A drawdown is the drop from a portfolio's peak to its next trough. If your portfolio hit ₹10L then fell to ₹7L before recovering, that's a 30% drawdown.
Historical Indian equities have seen 30–50% drawdowns roughly once a decade. The 2008 crisis, the 2020 COVID crash and the 2022 correction are three real examples.
The people who compounded wealth over 20 years didn't dodge drawdowns — they stayed invested through them. The people who sold at the bottom locked in losses.
Test before investing: if your portfolio dropped 40% next Monday, what would you do? If your answer is 'sell', you're too heavy in equities. Shift some to safer assets until the answer changes.