How to Weather Market Storms?

What are effective strategies to minimise the impact of downturns on a portfolio? There's no easy way to reconcile with the current market downturn. If you started investing 6-8 months back and have invested a large sum, then it can be even more jarring. On Friday itself, there was a fall of 4 per cent. If you have a large sum invested and your portfolio is down by 25 per cent - this can be difficult to deal with. The only way you can come to grips with the reality that the market rises and falls is to keep investing. Also, you have to come to the realisation that if you don't need this money soon, the impact the market fall has on this money doesn't matter in the short run. In a couple of years, the market will rise again. You'll have to wait. The simple idea is to buy cheap and buy again when the market goes up dramatically. It is to keep investing through every phase of the market. Suggested read: The value of real value Why is chasing hot stocks or sectors risky, and how can it be avoided? Investing is an optimistic act. You invest to maximise return, not lose less. However, in pursuit of higher returns, most investors choose non-diversified vehicles that are slightly concentrated. Whi

This article was originally published on February 28, 2025.