How to become rich in a falling market: Top money-making tips from experts; read list

How to become rich in a falling market: Stock markets have shown a spectacular V-shaped recovery after crashing in early morning trade to even hit the lower circuit. Many people have lost money, but here we show how to make money in a falling market. Yes, if the strategy is right and you do not get adventurous, you can make a lot of money. Share market experts reveal money-making opportunities about where to invest. They are of the opinion that it's better to invest in mutual funds or mutual funds SIP than to invest in shares directly. 

Elaborating upon this investment strategy, experts said that the way market has plunged indicates an index is expected to perform better and hence, it is better to invest in index funds than to buy a particular stock. 

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Importantly, they maintained that their suggestion is for the long-term time horizon means more than 7 years and not less than five years. So, in case you have a get-rich strategy, you have to weigh options and take action based on that.

Experts say investors should put their money in large-cap mutual funds in the current market scenario. Rohit Singre, Senior Technical Research Analyst at LKP Securities said, "The stock market is showing some signs of recovery post-lower circuit, but it's better to avoid stock-specific trade and go for the mutual funds, especially large-cap mutual funds with a long-term perspective." 

Singre said that those investors who have long-term perspective can go for the blue-chip large-cap stocks but pressed to prefer large-cap mutual funds ahead of the large-cap shares.

On why large-cap mutual funds are better suited for investors in the current stock market scenario, Jitendra Solanki, a SEBI registered tax and investment expert said, "In such a volatile market, mutual funds of mid-cap or small-cap category involves high-risk proposition and for equity investors, it's better to go for the large-cap mutual funds by investing a lump sum amount as the stock market has been falling. This strategy will help an investor to get a higher number of NAVs and once the market bounces back to its original position, they will be able to reap maximum benefits on their investments." 

However, he said that those who don't have a lump sum amount to invest can go for mutual funds SIP for big long-term gains.

Asked about some large-cap mutual funds that an investor can invest in the current scenario, Jitendra Solanki said that an investor can invest in index funds. He listed out UTI Nifty Index Fund, HDFC Index Sensex Fund. He also advised mutual fund investors to go for the large-cap active funds where Active Blue Chip, Mirae Asset Large Cap, ICICI Prudential Blue Chip can be a good option for investment.