The Indian stock market recently saw a bloodbath — over ₹5 lakh crore of investor wealth was erased in just one trading session. Sudden market crashes like this trigger panic, especially for retail investors. But fear-driven decisions often lead to more losses.
So how do you protect your money during these turbulent times? Vizzve Finance breaks it down.
Why Did the Market Crash?
While specific reasons vary — global cues, political instability, poor earnings, FII pullouts — the impact is usually swift and brutal. When indices fall sharply, retail investors often sell in panic, locking in losses.
7 Smart Ways to Protect Your Finances During a Crash
1. Don't Panic — Stay Invested for the Long-Term
Selling during a crash can turn paper losses into real losses. If your investments are sound, stay invested. Historically, markets always recover.
2. Diversify Your Portfolio
Don’t put all your eggs in one basket. A mix of equities, bonds, gold, and fixed deposits can reduce risk.
💡 Vizzve Tip: Use Vizzve’s financial planning tools to diversify and balance your investment portfolio effortlessly.
3. Build and Maintain an Emergency Fund
A market crash coupled with a personal emergency can wreak havoc. Always keep 3-6 months of expenses in a liquid emergency fund.
4. Avoid Margin Trading
In falling markets, margin trades can magnify your losses. It’s better to avoid high-leverage positions unless you’re a seasoned trader.
5. Look for Buying Opportunities
“Be fearful when others are greedy, and greedy when others are fearful.” Crashes can be good times to buy quality stocks at discounted prices.
📲 Vizzve Insight: Use our real-time market analysis to spot undervalued investment opportunities.
6. Rebalance Your Portfolio
Use market dips as a time to review and rebalance your portfolio. Maybe shift some equity into bonds or increase exposure to less volatile sectors.
7. Seek Financial Guidance
If you're unsure, consult a financial advisor. Or use platforms like Vizzve Finance, which offer AI-powered suggestions based on your financial goals.
What You Should NOT Do During a Crash
❌ Don’t check your portfolio every hour
❌ Don’t sell in fear or follow the herd
❌ Don’t make emotional investment decisions
How Vizzve Helps You Stay Financially Safe
With Vizzve Finance, you get:
Risk assessment tools to monitor exposure
Smart alerts before major market moves
Instant micro-loans to handle emergencies without selling your assets
Tailored investment insights based on market trends
FAQs: Market Crash & Your Money
Q1. Should I stop my SIPs during a crash?
No. In fact, SIPs work better during downturns due to rupee cost averaging.
Q2. Is gold a safe investment during a crash?
Yes, gold often acts as a hedge during stock market volatility.
Q3. Can I use loans to invest during a dip?
It’s risky. Only consider it if you have surplus income and strong risk tolerance. Vizzve offers low-interest micro-loans — but use wisely.
Published on : 6th July
Published by : SMITA
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