5 practical hacks to survive a market crash!


We are living through a few such weeks which may come to define this decade. And it may continue for some time till a concentrated response is put up against COVID-19. We, at Kuvera, are here to standby and answer your investment-related concerns.


These are extraordinary times and while markets have retraced 20% or more many times before, the speed with which this retracement has happened is a first. It took S&P 500 a mere 16 sessions to drawdown 20% and enter the bear market territory. Global markets are spooked and so are the Indian equity market. However, as we have seen many times before, human and economic resilience is immense and sooner or later markets do bounce back to reflect the constant march of progress.


Surprisingly for an individual investor, what works in peacetime also works in times of distress. I started working and investing during the cot com bubble and was trading CDS during the great financial crisis. Below are 5 lessons I have learnt to keep one’s personal investing simple. Simplicity matters, because just as in dieting, it is better to follow a diet you can follow for decades than one that requires extraordinary effort for immediate but fleeting benefits.


Let’s start with the biggest one. What should an investor do now?

Here is a quick list of practical advice we have learned by living through the dot com bust and the great financial crisis.

No gyan only simple actionable steps.


1/ Stick to your asset allocation and rebalance if it gets off by 5%. We will send reminders when that happens. In a crash, you will sell your debt and add equity. It may appear counter-intuitive but it is not. You are buying more equity as it falls.


2/ Track your wealth and not just your portfolio. The average Mutual Fund account on Kuvera is worth Rs 10.6 lakhs. The average EPF account is Rs 10.4 lakhs and the average gold account is Rs 6.2 lakhs. At a wealth level, last months ~20% decline in Equity Mutual Funds is still only a 5% decline in average wealth as gold has rallied.


3/ Postpone all decisions by 2 days. Say you are itching to buy or sell or stop a SIP or increase your SIP. Write the decision down and revisit it in two days. You will make better decisions.


4/ Check your wealth once a week. Yes, that’s right. The more you check the more you will think you need to do something. Anything. Inaction is not our strength.


5/ If you have itchy hands, buy Rs 100 in any index fund. Always buy, always make it a trivial amount. This is my personal favourite. It satisfies my urge to take action without making any difference to my long term outcomes.


And that’s it. 5 actionable steps.


If you have learnings you want to share, write to me. We will consolidate and publish it for everyone’s benefit.


Happy investing.

Gaurav | CEO | kuvera.in

20 Responses

  • Rajnish Chopda

    March 12, 2020 AT 08:29

    I think this is the best time start and keep continue our existing Sips as this is the time from where SIP returns are boosted and we get benefit of ups and down of market. Market shows increasing upward trend since its launch or time we consider. It moves ups and down in increasing trend.

    I am keeping my existing portfolio as it is and may increase SIP or move towards Mid And Small Funds as I always wanted to start SIP for 10 to 15 year period. There was buzz around market small and Mid caps are highly valued. Now this is the time it has break that market perceptions.

  • Mridul Chadha

    March 13, 2020 AT 08:07

    I treat this correction as a blessing. I have seen people make extremely attractive gains when they stayed invested in mutual funds during the 2008 crash. I follow a general rule of investing a small incremental amount (in addition to SIPs) in existing mutual funds whenever indices fall by over 1%. I invested 50% more in last 30 days than my usual monthly SIPs.


    March 14, 2020 AT 07:18

    Sir I want to invest 1lac lump sum in axis blue chip fund & 60lac in axis long term equity fund, is it right time to invest. Please suggest.

    • Gaurav Rastogi

      March 19, 2020 AT 01:59

      The absolutely right time will only be known in hindsight. Just remember you are getting the same funds 30-35% below recent peaks.

  • Rohan Acharya

    March 17, 2020 AT 04:10

    Yesterday I invested in 3 Conservative Hybrid. And as the markets are down every asset decreased significantly. Today I am regretting my decision of investing. What should I do?

    • Gaurav Rastogi

      March 19, 2020 AT 01:58

      Don’t regret. Stick to your asset allocation.

  • Abraham

    March 17, 2020 AT 06:47

    When ll market gets support line. am waiting for it. Dont know how deep it goes. Its beyond my thing. i have only investment that too in kuvera. am afraid now.

    • Gaurav Rastogi

      March 19, 2020 AT 01:58

      Hard to predict support line. The only thing we can control is our behaviour.

  • Sumit

    March 18, 2020 AT 12:11

    #3 n #5 👌👌👍

    • Gaurav Rastogi

      March 19, 2020 AT 01:57

      Thanks Sumit

  • SP

    March 20, 2020 AT 03:27

    Hey Gaurav, when you say sell your debt and buy equity in your first point do you mean that one should liquidate their debt funds and invest the same in equity?

    Pardon my poor comprehensive skills.

    • Gaurav Rastogi

      March 23, 2020 AT 07:55

      No, say you are 50:50 debt: equity. When the market crashes you will move to say 80:20 debt: equity. So you sell enough debt and buy equity so that your asset allocation goes back to 50:50.

  • Vinod Kulkarni

    March 21, 2020 AT 17:18

    Hi Kuvera Team, any chance that Kuvera platform will have options for investment in stocks. Many mutual fund platforms are coming out with direct equity options,

    • Gaurav Rastogi

      March 23, 2020 AT 07:54

      We are working on it.

  • Chandrasekar

    March 21, 2020 AT 17:37

    I am just started investing. So the sudden collapse in market didn’t affect me., In case in future if I have a surplus amount in mutual funds portfolios, what could I do during market crash?

    • Gaurav Rastogi

      March 23, 2020 AT 07:54

      Invest it based on your asset allocation.

  • Aniket

    March 21, 2020 AT 19:59

    Every time the market fell 1% from the previous day, I added 1% to my portfolio. In the 30% correction, I have allocated 50% of my targeted MF investments already and sitting on 50% cash, as the virus still has no defined solution and I am expecting another fall of Nifty at 7000 and 6500 – 6000. That’s when il be staggering in, the remaining 50%. While i understand that i can neither can the top or bottom accurately, but I can make it close to it, right? If there’s no fall…big deal, I invested 50% at quite a value 🙂 nice article thou.

  • Natasha

    March 22, 2020 AT 05:19

    I have just joined Kuvera. My suggested asset allocation is almost 50% debt, 50% equity. So should I consider investing more in equity as suggested in the article above?

    • Gaurav Rastogi

      March 23, 2020 AT 07:53

      No, stick to your asset allocation. If it moves away from 50:50 then bring it back to 50:50