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Gauravi Patel made post

What if the market crashes and comes back to 6-8K, should I sell my mutual funds and invest in the stock market?

Answer
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ALI ASGER NAJMI answered.
3 weeks ago


NO , JUST MAKE PROPER FINANCIAL PLANNING AND PREFER TODAY MONTHLY INCOME PLANS


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Diya Chitale answered.
2 weeks ago


The first rule of personal finance investing is- diversify your investments. So, it would especially foolhardy to invest all your money in the stock markets at that level. This does not mean that you can’t reshuffle your portfolio and invest the majority of your funds in stocks. Especially if you have a very good idea of what you are doing. But you must remember to limit the downside of your portfolio, given the scenario is such that Nifty has dropped to 6,000.

The stocks will be volatile and you will require alternative investments to absorb the shock. Capital protection is one of the key tenets of stock market investing. You wouldn’t be able to sufficiently protect your capital in such a scenario. Therefore, it does make sense to keep some funds in cash holdings or safer liquid investments like bonds, liquid funds, etc.