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People generally use such big events as an excuse to delay their decisions or hold back their investments. We always try to look at the reason closely and communicate to them that unless it is a negative news on the personal front such as illness or job loss or pay cuts, they shouldn't change their plans. We strongly discourage people from making such decisions based on market conditions. For example, there are regular arguments like the market is so high or gold prices have soared. Or some would say that let the RBI policy or the Budget be over. We try to convince them that these are not genuine reasons for them to stop or postpone their investments.

More than investments, people tend to postpone or advance their big-ticket purchases before an event like Budget. Somehow, there is a notion that Budget normally drives prices high. When it comes to investments, often these big events are almost inconsequential in the long term. Unless there is a really big event that alters the entire landscape of investment space, investors shouldn't bother about them. That is an advice you would hear from all advisors.

But how does it differentiate between these events? Or how does one know which one is a genuine issue or not. There is no standard advice on such issues and it is always based on the merit of the case. He says he has noticed that these big events or excuses fall under four categories: market related, government or regulatory driven, personal issues or career related. For example, when someone comes up with an argument that he wants to wait till December to see how foreign investors are going to invest before he puts money in the market. When someone points to higher gold prices as an excuse to avoid starting an SIP in gold. These are instances where you are trying to time the market, and it is a big NO," he says. The only occasion when he relents is when someone is expecting bad news on either the personal or the career front. "When someone is going though major illness in the family or somebody is expecting a pay cut or job loss, I always examine the issue more sympathetically. These are instances where one can consider delaying or holding back investments.

The big event has to be something like a landmark judgment or a policy decision. Or it also could be an unbelievably good deal, he says. "For example, there was this offer of allowing 50% depreciation in the value of car during 2008. That is a huge trigger for purchases. But such events are very few. As for budget and policy review by the central bank, he believes that mostly they won't alter your long-term plans. People who are waiting for policy announcements in the Budget tend to forget that most of these things are already factored in the price of stocks. So when the actual announcement comes, there may be only a small reaction to that. Sure, there are totally unexpected announcements that will move the market, but it is not wise to wait for them to make investments.

So, the next time you feel like waiting for a big event to pass before starting a SIP or renewing one, remind yourself that it is thinly-veiled effort to time the market. Also, remind yourself that it is almost impossible to time the market in the long term.