There was an outcry due to the crash in the share market: Know what to do and what not to do if the share market falls…

Due to US-Iran tension, a big fall was seen in the Indian stock market on March 2. The Sensex fell by more than 1,000 points to around 80,000, while the Nifty fell by 300 points to 24,900. Crude oil jumped 10% to $ 79 per barrel, which increased pressure on the energy and auto sectors. Gold rose by Rs 5,000 to Rs 1.67 lakh per 10 grams – which means investors are running towards safe options.

In such an environment, the biggest question is, what should investors do if the market falls?

1. Don’t take decisions in panic

The biggest mistake is panic selling when the market falls. History shows that after every major fall, the market has also recovered. If your investments are in strong companies, then it is not wise to sell just seeing the decline.

2. Review Portfolio

Have you invested more money in high-risk sectors?
Do you have an emergency fund?
Are your investment goals clear?

It is wise to balance the portfolio in times of downturn. Diversification means investing in different sectors reduces risk.

3. Continue SIP, don’t worry about timing

If you are doing SIP in mutual funds, then decline can also be an opportunity for you. Units are available at low prices. This averaging gives benefits in the long run.

4. Do not invest by taking loan

Leverage (trading by borrowing) is the biggest risk in market uncertainty. At this time it is more important to keep the cash position strong.

5. Maintain safe investment balance

Alternatives like gold and debt instruments keep the portfolio stable during market volatility. But investing the entire amount in a single asset is also not a good strategy.

6. maintain mental balance

Not every decline is permanent. Overload of news and social media increases tension. Take advice from your financial advisor, not rumours.

Will this decline last?

If oil prices go up to $100-120, the pressure may increase further. But global markets often react quickly to news and when conditions become normal, recovery comes equally fast.

No fear, discipline is necessary

A fall in the stock market is part of the risk. It would be wise to think long term, do proper asset allocation and not take decisions based on emotions. Markets fall, but investors who survive are the ones who win in the end.