1. Maintain a disciplined approach by continuing monthly investments.
2. Keep an investment reserve equivalent to 3 months of your monthly investment budget in cash. Use this reserve strategically during market dips: invest one month’s budget if the market declines by 5%, repeat for each subsequent 5% drop.
3. Avoid investing any funds in the stock market that you’ll need within the next 3 years.
4. Build a strong, diversified mutual fund portfolio before taking significant positions in sectoral funds.
5. Refrain from directly investing in individual stocks even if you see drops of 20-30% in good companies. First, aim to build a mutual fund portfolio worth ₹10-20 lakh, then consider moving ₹3-6 lakh from it into a diversified stock portfolio.