In my previous post about how to sustain market volatility we have mentioned that we need to see market fall as an opportunity.
But it is better to follow some strategy rather than investing randomly, so mentioning below some of the best strategies to invest in falling Market.
Invest in Market leaders:
In beat market/falling market it is always better to hold on winners, As above companies are market leaders market fall will have less affect compared to the other companies and at the same time share price will be revived early.
Invest in Index Funds/Bees:
If you are still afraid to choose particular stock, you can invest in Index Funds/ETFs/ Bees, even though some fall will be there in short time, we can see good return over longer periods for example SENSEX has grown CAGR of 14.06% over the past 20 years.
Follow SIP:
And while Investing instead of buying in bulk, follow the SIP/Investments, because some times we may feel that market is recovering but it may not as no one can time the market, Better to follow SIP while investing in falling market.
Do Average down:
If you have done enough study about the company your investing then only Averaging down will be good strategy, never ever do Average down randomly, wait for some bullish signals, Also keep track on management activities or they increasing their holding or decreasing, If promoter are increasing their stake means, they have more confidence on their business.
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FunTech Team