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The stock market today i.e. April 7 declines by more than 4%. At the same time, the market has fallen more than 8% so far this year. This decline has an atmosphere of fear among investors. However, the right strategy in this decline can give you good money.
According to Kedia Advisory director Ajay Kedia and Investment Expert Swati Kumari, one should focus on strong fundamental and large-cap stocks at this time. These companies perform better at such a time. At the same time, consumption sector shares like pharma-healthcare, energy and banking should be invested.
7 important things mentioned by experts, which are kept in the decline of the market …
1. Stay calm and avoid sales in nervousness
What to do: Avoid making emotional decisions during the market fall. Selling the stocks at cheap price is fixed, while holding holds the possibility of recovery.
Why: Historically, the Indian market has shown recovery after large shocks (such as 13.15% fall in March 2020). This decline of April 2025 can also be temporary.
2. Note Stocks with Strong Fundamental
What to do: Invest in companies that have strong balance sheet, frequent profit, and good management, such as large-cap stocks or defensive sectors (FMCG, Pharma).
Why: Large-cap and defensive stocks are less unstable in the fall. For example, on 4 April when IT and Financial Sector fell, the pharma index saw a growth of 2.25%.
3. Start or increase Systematic Investment Plan (SIP)
What to do: Invest regularly through SIPs in mutual funds or index funds, especially when the market is below.
Why: Investing in the decline is low average cost, and better returns get better returns when the market recover. For example, after the 2008 recession, investors received a return of SIP 12% to 15% of Laj Cap Funds in the next 5 years (2009-2013).
4. Keep a cash reserve
What to do: Keep 20-30% of your portfolio in cash or liquid assets so that there is a chance of shopping when further declines.
Why: The market can go down further. You can buy quality stocks cheaply by having cash. This strategy is often adopted by large investors.
5. Risk management required
What to do: Set a stop-loss or use hedging tools such as put options, especially for traders. Focus on long -term investors diversification (equity, date, gold).
Why: In April 2025, IT sector (Infosys, TCS) has seen a decline of 20-25%. Risk management can limit losses, especially in unstable market.
6. Avoid cheap stocks
What to do: Avoid investing in companies with sharp stocks or weak fundamentals.
Why: These stocks are the most affected in the decline and the chances of recovery are less. For example, there has been a huge loss in 2025 in small-cap and mid-cap stocks.
7. Keep an eye on long periods
What to do: Ignore the fluctuations in the short term and set a target of 3-5 years.
Why: The Indian market has always shown growth in the long term. From 1992 (12.77% fall) to 2020, recovery has taken place after every major crash.
(Tagstotranslate) Stock market safe investment tips