How to safeguard your hard earned money even during market crash?

 

How to safeguard your hard earned money even during market crash?


2020 Market crash due to the Coronavirus outbreak was one of the biggest crashes that the stock market witnessed in the past 2 decades. Nifty 50 tanked by almost 40% during COVID-19, in just a matter of few days.

For those who don't know about the stock market, it's all about patience and risk-taking ability.

So the question here is "Is it possible to safeguard our money from market crash??". 

The answer is YES!!! 

Today I'm introducing you to a basket of investment instruments that help you resist market crash.

For the mode of investment, we are about to discuss, you need a Demat account. If you don't have any feel free to open an account in Zerodha, Angel Broking, or Upstox

Small case - All Weather Investing

Small cases are basically a group of investment instruments grouped together based on a particular ideology.
All-Weather Investing basket invests in different ETFs with different allocation percentage. This helps in maintaining a higher return. The small case also provides the option of customizing the allocation based on user preference. But it's always better to follow what the small-case itself is recommending. 

Before diving deep into the fundamentals let's see the return it has generated to date from its date of inception. 

all weather investing smallcase return graph
Return of All Weather Investing smallcase(blue) VS Nifty50(yellow) [Source: Smallcase]

As you can see blue line represents the price movement of All Weather Investing Smallcase with Nifty50 Index. 
Before diving deep let's see how some of the top stocks performed. 

stock return vs nifty50
Return of Dividend Aristocrat(Blue) VS Nifty50(Yellow) [Source:Smallcase]


See how both the baskets performed. The all-weather investing basket was able to sustain the market crash whereas Dividend Aristocrat was not. 

Note: Stocks give better return with advantages of bonus, splits and dividends whereas ETFs won't.


Advantages of Small Case

  • Diversified, long term and low-cost products.
  • Simple to understand
  • Created by experts
  • More than 30+ baskets with low, medium and high risks.