How to Manage Your Stock Investment Portfolio in a Fall

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Do not worry about a stock fall. It happens as investing in stocks comes with risks. But you should do some management to manage risk during a huge fall. Read below to know how to manage risk in stock investments when the markets are falling.

After I started discussing stocks I received some emails from my subscribers who wanted to know what to do with the stocks they have in their portfolios.

It takes time to do research but then I helped them.

If you too are worried about your portfolio of stocks not going up despite Nifty hitting an all-time high in July 2023, then here is what you can do:

Look for small-cap stocks in your portfolio:

If you have not invested too much in small caps and if the loss is small like less than 2000 then I would suggest exit. These kinds of losses are bearable and will not hamper your quality of life.

However, if the loss of all combined small-cap stocks is huge then you can exit partially so that the loss is small and you can wait for the rest of the stocks to appreciate.

Then look for mid-caps:

Mid-caps are not as risky as small caps but anything is defined as risky if you have invested too much in one single stock.

Again the rule of exiting implies if the loss is small but if the loss is big, exit partially. Partially cannot be defined buy ideally 25% of the stocks you can exit. This will reduce the stress of holding too much of a too-bad stock.

Do you own Large Caps?

It’s always less risky to own large caps / blue chip company. With large caps, there is no rule. Just hold them, with time they will be in profit.

This is how you should manage your portfolio with time.

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