Review your portfolio, look for investment opportunities

The tenets of long-term investing based on time horizon, asset allocation, and financial goal orientation should not change during times of slowdown. It is important to avoid impulsive calls, such as stopping investments completely or trying to de-risk the portfolio by exiting from equities due to short-term underperformance.

During a downturn, it is prudent to periodically review the health of your portfolio and, wherever possible, look for investment opportunities to meet long-term wealth creation goals. Create a monthly budget and regularly monitor your purchases to avoid overspending on unnecessary items.

It would be useful to invest some amount (six to 12 months of expenses) in ultra short-term or arbitrage funds. Also, be cautious about borrowing. If you already have EMIs running, avoid taking additional loans that can affect your budget.

If you have already set aside the requisite savings, and at the same time have minimal debts, you will be able to maintain the lifestyle you are used to.

Santosh Joseph, Founder and managing partner, Germinate Wealth Solutions