Gold, Silver, Real estate and stock all are kinds of investment.
Similarly, think Gold price is high. Is it right time to invest for 3 years.
Similarly you want to buy a plot of land, real estate. Price is high but you want to invest for 3 years.
So gather all the information about which share, stock, debenture, derivative, cash market, or commodity you want to invest.
Got information about it, apart from the fact the price is high, now what is the returns your expecting.
Say you brought piece of land, price was high. But still you brought land and as you expected it grew and after you brought price increase to say from 1 million to 10 million.
You will sell it, or
Hold it and expect it grow further or,
So you have plan.
If price of land decreased from 100000 to 60,000 you will sell it.
Or hold it thinking it will bounce back.
Or you will buy some more land hoping that as soon as price increases, losses will recover.
For final decision your the best person, because i want to invest in stock for just decent returns in 3years, some one for high returns in 3 years, someone because they think a certain stock will do well in that 3 years.
All will have their plans for both profit and loss situations.
This is what you have to keep in mind and invest.
Generally, speaking, since you said markets, i will invest in broad market or index market funds or shares as india is good growing market. I expect it grow further.
Losses or correction can happen.
But i expect market to grow another 15–18 percent from current numbers.
But as said keep profit booking plan and loss exit plan apart from 3 year horizon in mind.
Say suppose you want goto interview, its must but weather dint permit.
You took cab, but broke down.
You called and told situation.
So either they gave another chance or you missed it.
So same be prepared for both situations in shares, why is that people only think i want returns, it can never happen.
Even Warren Buffet lost money.
Other day facebook shares fell 16.2 billion, this is the money most hardly even earn in our lives.
So plan and invest.
I would say invest say e.g. 1000 and if it drops to 6,00 i would sell. 40 percent loss, i am okay to take based on market readings.
If it reaches 1300 within 3 years (30 percent), i will take 1100 and invest 200 (20 percent returns) and again replan my profit and loss plan for that 200 (20 percent returns) and remaining time frame left in that 3 years.
But this again for an amount of 1,000. So you choose how much you are okay to lose, how much returns you expect and whats your profit book and loss exit plan.
But expect another 15 to 18 percent returns, subject to loss of 5–10 percent.