Crash

Practical hacks to survive a market crash!

No gyan only simple actionable steps.

1/ Stick to your asset allocation and rebalance if it gets off by 5%. We will send reminders when that happens. In a crash, you will sell your debt and add equity. It may appear counter-intuitive but it is not. You are buying more equity as it falls.

2/ Track your wealth and not just your portfolio. The average Mutual Fund account on Kuvera is worth Rs 10.6 lakhs. The average EPF account is Rs 10.4 lakhs and the average gold account is Rs 6.2 lakhs. At a wealth level, last months ~20% decline in Equity Mutual Funds is still only a 5% decline in average wealth as gold has rallied.

3/ Postpone all decisions by 2 days. Say you are itching to buy or sell or stop a SIP or increase your SIP. Write the decision down and revisit it in two days. You will make better decisions.

4/ Check your wealth once a week. Yes, that's right. The more you check the more you will think you need to do something. Anything. Inaction is not our strength.

5/ If you have itchy hands, buy Rs 100 in any index fund. Always buy, always make it a trivial amount. This is my personal favorite. It satisfies my urge to take action without making any difference to my long term outcomes.

And that's it.