Stock Market Crash

We witnessed the biggest ever stock market crash in Indian stock market history in the last 7 days. Starting May 18 through May 22.

May 18 Sensex losses 826 points
May 19 Sensex loses 453 points !

Here is what I did. I invested in 6 mutual funds during this time. I invested 35% of the funds I had for investing into 3 mutual funds on May 19. I exited one stock SAIL (at a profit though) and moved that money into another 3 mutual funds. Well I would say donot panic sell. There is no need. I jut thought it was ok to sell SAIL.

Well my preferred fund houses are Templeton, Sundaram and Reliance in order of preference. I would compare this mode of investing on different days of a crash like an SIP :-) I am already invested in some of these funds via a monthly SIP. But the fact that these funds like many others wiped out all the gains to levels 3 months back got me thinking , Why not do a SIP kind of stuff during a crash too. Yes there is an entry load but still I think it is a good bet. I was expecting the markets to recover on May 19. But it furthur tanked ! Hence the only option was waiting for the initial upward trend or stability and then going for another round of invetment.

I guess this is a less risk prone strategy of investing in stocks. I know it makes me look like a scared puppy in front of the bears and bulls. Who cares about machoism I just want to ensure my hard earned money works hard for me and I get it back.

Well I am no pro in investing, but I have a strong feeling that this is a good strategy (esp. for those busy people) to use if you have the money in hand during a crash.


Some of my preferred websites to track the stock market are : www.equitymaster.com and hdfcsec.com. The login version in equitymaster.com terrific especially if you want to do trend analysis etc.