In the last few days, the global markets witnessed a significant crash as crypto prices fell and fear of a US recession loomed. The US and Europe markets were jolted by Japan's Nikkei 225 index fall which at one point was 13.4 per cent.

When such volatility hits the stock market, it generally leads to panic selling - a move which has been highly discredited by all financial experts.

Experts have debated over whether to go for panic selling or do nothing when the stock market nosedives, but ace investor Warren Buffett has another formula to navigate through the dwindling stocks which is 'aggressive' buying.&nbsp;

Even though panic selling is a big 'NO' for investors when stocks are crashing and their portfolios are dropping drastically, there are ways in which you can survive the bloodbath at the stock market.&nbsp;

<h2>Best ways to save your investment portfolios from downturn</h2>

<h3>1) Diversify your portfolio</h3>

Diversifying the portfolio by investing in funds&nbsp;and&nbsp;investment trusts of share-based assets is a safe option to keep yourself floated in tough times.&nbsp;

Such portfolios have a lower risk of facing a decline in comparison to the investments made in companies. The portfolios can have funds from different industries or geographic sectors which contain the impact of volatility.&nbsp;

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/money-wise-ola-electric-rides-ipo-market-heres-everything-you-need-to-know-before-investing-746495">Money-Wise: Ola Electric rides IPO market. Here's everything you need to know before investing</a>

"One should look to Invest in funds which have a domestic theme like manufacturing as it will not have the risk of a global slowdown," said Siddharth Karnawat, co-founder of Blue Sky Capital while speaking to WION.

<h3>2) Invest in different assets</h3>

When the stock market is in a slump, the portfolio can also be protected with the diversification of investments into non-equity-based assets like property, commodities and bonds.

It is advisable to select assets which have no co-relations as the prices in every sector do not rise and fall at the same time.&nbsp;

Investment in diverse assets like - government bonds, corporate bond funds, gold bullion, precious metal mutual funds, real estate investment trusts (REITs) and exchange-traded funds (ETFs) should lessen the impact of the stock market downturn.&nbsp;

<h3>3) Understanding the right time to invest</h3>

When the stock market crashes, it becomes difficult for investors to understand when they should buy low/sell high stocks.&nbsp;

A simpler option, which will have less impact of a market slump, is to invest monthly and not in lump-sum which helps investors benefit from ‘pound cost averaging’.&nbsp;

In this case, the investors purchase more units or shares of the same amount in comparison to what they purchased a month before because of a fall in share prices, and hence, eventually pay the average price of the shares or units.

Watch:&nbsp;World markets quake over risks to US economy

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/world-markets-quake-over-risks-to-us-economy-747497/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Speaking about the correct time to invest in the Indian stock market, Karnawat said, "Whenever nifty PE is below historical Avg of 20 it is good time to Invest and whenever it’s above 24 it is overvalued."&nbsp;

<h3>4)&nbsp; Go for total return funds</h3>

The total return funds, which are also known as balanced or cautious funds, are aimed at ensuring capital growth in rising markets while also protecting the money of the investors when the stock markets crash.

In the last few days, the global markets witnessed a significant crash as crypto prices fell and fear of a US recession loomed. The US and Europe markets were jolted by Japan's Nikkei 225 index fall which at one point was 13.

In the last few days, the global markets witnessed a significant crash as crypto prices fell and fear of a US recession loomed. The US and Europe markets were jolted by Japan's Nikkei 225 index fall which at one point was 13.4 per cent. When such volatility hits the stock market, it generally leads to panic selling - a move which has been highly discredited by all financial experts. Experts have debated over whether to go for panic selling or do nothing when the stock market nosedives, but ace investor Warren Buffett has another formula to navigate through the dwindling stocks which is 'aggressive' buying. Even though panic selling is a big 'NO' for investors when stocks are crashing and their portfolios are dropping drastically, there are ways in which you can survive the bloodbath at the stock market. Best ways to save your investment portfolios from downturn 1) Diversify your portfolio Diversifying the portfolio by investing in funds and investment trusts of share-based assets is a safe option to keep yourself floated in tough times. Such portfolios have a lower risk of facing a decline in comparison to the investments made in companies. The portfolios can have funds from different industries or geographic sectors which contain the impact of volatility. Also Read: Money-Wise: Ola Electric rides IPO market. Here's everything you need to know before investing "One should look to Invest in funds which have a domestic theme like manufacturing as it will not have the risk of a global slowdown," said Siddharth Karnawat, co-founder of Blue Sky Capital while speaking to WION. 2) Invest in different assets When the stock market is in a slump, the portfolio can also be protected with the diversification of investments into non-equity-based assets like property, commodities and bonds. It is advisable to select assets which have no co-relations as the prices in every sector do not rise and fall at the same time. Investment in diverse assets like - government bonds, corporate bond funds, gold bullion, precious metal mutual funds, real estate investment trusts (REITs) and exchange-traded funds (ETFs) should lessen the impact of the stock market downturn. 3) Understanding the right time to invest When the stock market crashes, it becomes difficult for investors to understand when they should buy low/sell high stocks. A simpler option, which will have less impact of a market slump, is to invest monthly and not in lump-sum which helps investors benefit from ‘pound cost averaging’. In this case, the investors purchase more units or shares of the same amount in comparison to what they purchased a month before because of a fall in share prices, and hence, eventually pay the average price of the shares or units. Watch: World markets quake over risks to US economy Speaking about the correct time to invest in the Indian stock market, Karnawat said, "Whenever nifty PE is below historical Avg of 20 it is good time to Invest and whenever it’s above 24 it is overvalued." 4) Go for total return funds The total return funds, which are also known as balanced or cautious funds, are aimed at ensuring capital growth in rising markets while also protecting the money of the investors when the stock markets crash.

Money-Wise: Have the global stock markets crashed? Here's what you must do

Wall Street ended its worst week in a decade with more bruising losses Friday, and with the tech-rich Nasdaq entering a bear market amid worries about trade wars and a possible <a href="http://www.wionews.com/world/us-government-shuts-down-at-midnight-as-house-adjourns-with-no-deal-185738">US government shutdown</a>.

The Nasdaq and Dow suffered their worst weeks since the start of the global financial crisis as the US-China trade dispute returning to the forefront and amid continued concerns about the <a href="http://www.wionews.com/business-economy/us-federal-reserve-hikes-interest-rates-wall-street-stocks-tumble-185385">Federal Reserve's plans for interest rate increases</a>.

"It has been a remarkably terrible trading week for financial markets amid concerns over rising US interest rates, decelerating global growth, Brexit uncertainty and chaos in Washington," said Lukman Otunuga, a research analyst at FXTM.

The Dow Jones Industrial Average finished the week with a loss of nearly seven per cent, after losing 1.8 per cent or more than 400 points Friday, to close at 22,445.37.&nbsp;

Markets elsewhere were mixed, with European bourses flat or rising slightly, while Tokyo slid.

The Wall Street decline came as Washington teetered towards a likely government shutdown as US President Donald Trump dug in on threats to close if congressional Democrats continue to refuse his demand for funds to build a wall on the border of Mexico.

Thousands of US government employees could be furloughed without a paycheck right before the end-of-year holidays if Trump and congressional Democrats fail to strike a deal by midnight (0500 GMT Saturday).

Hardline voices

With that deadline looming, investors received another jolt in the final hour of trading when White House advisor Peter Navarro delivered hardline comments on the ongoing trade talks with China.

"China is basically trying to steal the future of Japan, the US and Europe, by going after our technology," Navarro, a longtime China hawk, told the Japan's Nikkei news agency in an interview conducted Thursday but published Friday.

And he said China must address all US concerns about its trade policies, saying there are "no half-measures."

Investors also have been anxious over the surprise resignation of Defense Secretary Jim Mattis, who laid out significant policy disagreements with the US president in his letter to Trump which he made public.

"We are in a fragile environment," said Gregori Volokhine of Meeschaert Financial Services.&nbsp;

"The extremist position is winning in the Trump administration, not just on trade but on everything."

Investors have been unnerved by the Federal Reserve's decision to raise interest rates this week, and projecting it would continue to raise next year.

New York Federal Reserve Bank President John Williams on Friday tried to tamp down market concerns, opening the door to a more benign monetary policy in 2019, saying the Fed was listening to the fears about the risks and will "be ready to reassess and re-evaluate our views and our policy stance."

Stocks briefly rallied on Williams remarks, but fell quickly back into the red.

Wall Street ended its worst week in a decade with more bruising losses Friday, and with the tech-rich Nasdaq entering a bear market amid worries about trade wars and a possible US government shutdown.

Wall Street ended its worst week in a decade with more bruising losses Friday, and with the tech-rich Nasdaq entering a bear market amid worries about trade wars and a possible US government shutdown. The Nasdaq and Dow suffered their worst weeks since the start of the global financial crisis as the US-China trade dispute returning to the forefront and amid continued concerns about the Federal Reserve's plans for interest rate increases. "It has been a remarkably terrible trading week for financial markets amid concerns over rising US interest rates, decelerating global growth, Brexit uncertainty and chaos in Washington," said Lukman Otunuga, a research analyst at FXTM. The Dow Jones Industrial Average finished the week with a loss of nearly seven per cent, after losing 1.8 per cent or more than 400 points Friday, to close at 22,445.37. Markets elsewhere were mixed, with European bourses flat or rising slightly, while Tokyo slid. The Wall Street decline came as Washington teetered towards a likely government shutdown as US President Donald Trump dug in on threats to close if congressional Democrats continue to refuse his demand for funds to build a wall on the border of Mexico. Thousands of US government employees could be furloughed without a paycheck right before the end-of-year holidays if Trump and congressional Democrats fail to strike a deal by midnight (0500 GMT Saturday). Hardline voices With that deadline looming, investors received another jolt in the final hour of trading when White House advisor Peter Navarro delivered hardline comments on the ongoing trade talks with China. "China is basically trying to steal the future of Japan, the US and Europe, by going after our technology," Navarro, a longtime China hawk, told the Japan's Nikkei news agency in an interview conducted Thursday but published Friday. And he said China must address all US concerns about its trade policies, saying there are "no half-measures." Investors also have been anxious over the surprise resignation of Defense Secretary Jim Mattis, who laid out significant policy disagreements with the US president in his letter to Trump which he made public. "We are in a fragile environment," said Gregori Volokhine of Meeschaert Financial Services. "The extremist position is winning in the Trump administration, not just on trade but on everything." Investors have been unnerved by the Federal Reserve's decision to raise interest rates this week, and projecting it would continue to raise next year. New York Federal Reserve Bank President John Williams on Friday tried to tamp down market concerns, opening the door to a more benign monetary policy in 2019, saying the Fed was listening to the fears about the risks and will "be ready to reassess and re-evaluate our views and our policy stance." Stocks briefly rallied on Williams remarks, but fell quickly back into the red.

Third straight rout end worst weak for Dow, Nasdaq since 2008 crisis

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Money-Wise: Have the global stock markets crashed? Here's what you must do

Third straight rout end worst weak for Dow, Nasdaq since 2008 crisis