Why Indian Investors Should Stop Obsessing Over the S&P 500

A common mistake we see especially among Indian investors is this strange belief: “If the S&P 500 goes up, my investments must be doing well too.”

That’s not just wrong — it’s dangerous.

The S&P 500 is an American index. It tracks big U.S. companies like Apple, Microsoft, and Google. Most Indian investors don’t own these companies directly. So why would a green day on the S&P 500 have anything to do with your portfolio in India?

It doesn’t.

But humans like patterns. And the media shows the S&P 500 constantly ----- red arrows, green arrows, lots of noise. People get tricked into thinking it matters to them, even when it doesn’t.

Here’s the truth: What matters is what you actually own -- Indian businesses, Indian stocks, Indian mutual funds and how those are doing. Not what some American index did overnight.

If the S&P 500 rises or falls, that doesn’t change the quality of HDFC Bank, Reliance, or TCS. It doesn’t affect your long-term goals either --- unless you panic and start acting foolish.

The real danger is reacting emotionally to headlines that have nothing to do with your financial life. That leads to bad decisions. Buying and selling at the wrong time, or chasing trends you don’t understand.

What should you do instead?

• Know what you own.

• Think long-term.

• Ignore noise.

• Stay rational.

It’s boring advice — but it works.