How to invest during market crash for best returns?

March 15, 2020

How to invest during market crash for best returns?

Our 2 year old video on stock market crash of 2019-2020:

Live feed Link:
https://marketsecrets.in/technicals/nifty-investment-levels

Stock market is crashing for last 2 weeks and Nifty has dropped 31% from its high’s so far. During market crashes, people make either of these 2 mistakes –
1. people invest too early
2. People invest too
Learn, how to invest properly and systematically during this market crash?

Few things I want you to remember.
1. Adjust this plan based on your goals and surplus cash.
2. You should never panic.
3. Understand why market is crashing.

How to invest during market crash? Observe how market is crashing.
1. It is falling too fast.
2. Observe what happened on yesterday (March 13).
3. V shaped recovery
4. 65-70% carsh is possible

Now, how to invest during this scenario – First you should have a Basic investment Plan:
What is basic investment plan?
1. It should have a goa
2. Develop a discipline of investing regularly – This is your regular monthly SIP
3. Develop and stick to “what if things go wrong plan”

What if things go wrong plan:
Objective – Reduce or totally remove the number of decision makings during market crashes.

Basic Rules:
• I won’t invest in any new stocks or Mutual funds
• I will not deviate from my investment plan regardless of whatever news, issues, or reasons.

So what are my plans for investing during market crashes?
I have clearly written down what I will do if market crashes or corrects 10%, 20%,30%,40% and 50% and I’ll blindly follow it during market crashes/corrections.
1. When market is down 10% – Increase monthly investment 50% by manually buying stocks/MF on the same day 10% is breached and until market moves above 10% mark.
2. When market is down 20% – Double monthly investment by manually buying stocks/MF on the same day 20% is breached and until market moves above 20%
3. When market is down 30% – Triple monthly investment by manually buying stocks/MF on the same day 30% is breached and until market moves above 30% mark
4. When market is down 40% – Increase monthly investment 5 times by manually buying stocks/MF Units on the same day 40% is breached and until market moves above 40% mark
5. When market is down 50% – Invest 50-75% current debt corpus or cash immediately in stocks/MFs and have remaining corpus for investing during the recovery