Stock markets have crashed due to Russia’s attack on Ukraine. After falling up to 2,000 points, the Sensex was trading below the 1600 mark at 11:44 am. The same is the case with Nifty. It is showing weakness of 440 points. This fall has worried the investors of the shares. They are afraid of big loss. If the fall further increases then their entire profit will be wiped out.
Some investors are also worried about losing their capital. But, if you have invested in stocks then you need not panic. Moneycontrol is with you in this difficult time. He’s telling you what you need to do right now.
1. Don’t close your SIP
You do not have to close your SIP due to the fall in the stock market. There is a solid basis behind our advice. A study by IDFC Mutual Fund shows that even after the crash in the stock market when the corona virus started in 2020, investors who continued their SIPs would earn many times more profits than those who panicked. He had turned off his sip.
Also read: Nifty-Sensex falls by about 3%, the important reasons that are pulling the market behind
2. Invest, Avoid Betting
Many investors make their own decision to buy shares. Some have even started trading in derivatives. Now is the time to be careful. You should not invest in stocks about which you have no idea. You are not to enter into any transaction that you do not understand, including derivatives. Especially do not invest at all on the advice of friends and relatives. If you can invest some money, then invest it in companies whose performance is nothing to worry about. Once the situation normalises, their prices will again reach new highs.
3. Take care of diversification
It is great if you have invested in different types of assets. Keep your portfolio diversified. This means that you should avoid investing in only one type of asset. Your portfolio should also contain stocks, gold and other assets. Even if you have invested only in stocks, it is important to take care of diversification. This means that your portfolio should not consist of stocks from only one sector.
4. Understand the Importance of Investing in Gold
If you have invested in gold or gold best instruments (gold mutual funds, gold bonds) then keep it. Gold is considered the safest when the world is in turmoil. This is the reason why gold prices go up at such times. Hence, even though the return on investment in gold is low, it helps in keeping your money safe during difficult times.
5. Invest only if you have extra money
Some investors use the opportunity of a fall in the stock market to make new investments. This strategy is correct. But, it is difficult to predict anything about the situation as of now. So if you have money that you do not need for the next few years, then invest it in stocks or mutual funds. Because the importance of cash increases in difficult situations. Avoid investing money that will help you tide over the tough times.
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