2025's Equity Reality Check: Diversify, Stay Disciplined for 2026 Success

• 2025 delivered modest returns and sharp drawdowns, especially in small caps, after two blockbuster years for Indian equities.
• Diversification across asset classes (equity, debt, gold) proved crucial, protecting portfolios from significant damage.
• Chasing past returns in small-cap funds led to losses, highlighting the risk of extrapolating previous performance.
• Courage to invest during market corrections was key, with experts noting multiple buying opportunities in 2025.
• For 2026, investors should rebalance portfolios, stick to asset allocation, and maintain discipline with SIPs during dips.

Why It Matters: 2025 taught investors vital lessons on diversification, discipline, and avoiding chasing past returns for 2026.