MoneyMattr's Strategy of investment in falling stock market

This is how we at Money Mattr are investing our money in falling stock market. It is not investment advice, we are just sharing what we are doing.

#1 SIP

Start Systematic Investment Planning [SIP] instead of putting all the money in once. SIP ensures your money is segregated in smaller chunks and invested every week/month. Which helps you get the benefit of market correction.

#2 Diversified Portfolio

Do not put all your money in one type of Industry. Always select stocks from a combination of industries like Pharma, Tech, Banks, Energy etc. You can decide how much you want to put in each sector and accordingly pick stocks from each

#3 Value Based Stock

Currently, the market is very volatile. At this time momentum stocks may lead you to high loss. Pick value-based stocks which will certainly rise when the market starts to rise. Companies such as Bajaj Finance, L&T, Naukri are good market players and are at correction of more than 25%.

#4 High Debt Stocks

Don’t put your money in High debt stocks. As they are already in debt, there is no surety of them picking up with good pace. Even though those companies are famous but surely consider putting your money in such stocks, they may lead to your money being stuck in the long term with very less return.

#5 Confusing Stocks

Study about the company and view their Profit and Loss and Balance sheet before investing. If you are not sure how the company is making money and if they will be able to perform better in coming quarters then refrain from buying such stock.

#6 Index Funds

Investing in Index stocks such as Nifty 50 or any Index fund can give you the benefit of the current market. As they go up and down with the market, they can be a good starting point for your investing journey.