Financial Planning

The spread of Covid-19 has mauled the market. Finding yourself in the grips of a bear market will upend any haughty notions you may have about your risk appetite. This story tells you how to contain the damage caused to your investment portfolio. For the first time in a decade, Indian investors are witnessing a full-blown bear market. The frontline BSE Sensex index has tanked 30% from its January peak. The earlier crash had seen the index lose 60% of its value. Investors are worried how big the cut will be this time and how they can protect their finances. While the reasons for stock market crashes vary every time, the basic tenets of surviving these events remain the same. If you follow the principles outlined below, you should be able to safely manoeuvre your finances through this challenging phase. What to do Create a financial cushion Since severe bear markets are usually accompanied by crippling economic downturns; they can wreak havoc on your finances. Retrenchments, sal