Investing in a Downturn: Review Your Money Plan

When markets fall, a lower price does not by itself tell you whether to buy more, sell or leave an investment unchanged. Begin with the purpose of the money, when you need it and how much risk your household can carry.

This review is for Singapore adults reconsidering a financial plan during a market downturn, including millennials balancing investments with housing, family and other commitments. It makes no claim about whether today’s market is a bear market, and recommends no particular investment or trade.

Featured image: a conceptual illustration of a savings jar and coins. It does not represent an actual portfolio, account balance or return.

Write down the goal and the date

Give each financial goal an amount and a time frame. Money needed for a near-term commitment has a different purpose from money intended for a longer-term goal.

MoneySense’s portfolio guide puts objectives, investment horizon and available funds at the start of the discussion. Review those facts before treating a market fall as an opportunity or a reason to change everything.

Ask what has actually changed: the goal, the date, your income or the investment’s role in the plan. A headline alone does not establish that any particular action suits your circumstances.

Check cash needs and household commitments

List the money needed for everyday expenses, loan repayments, insurance premiums and emergencies. Keep that review separate from the amount you might be able to commit to investments.

MoneySense’s portfolio guidance asks readers to account for these commitments before working out available investment funds. Its Basic Financial Planning Guide provides broader planning resources for different life stages.

For the household figures, our monthly budget-check guide explains ways to review income and expenses. Use current figures rather than assuming a past contribution remains affordable after your circumstances change.

Review the loss you can bear

MoneySense’s risk guidance explains that investments carry risk and that some can lose part or all of the money invested. Consider the effect of a loss on your commitments and future goals, alongside how comfortable you feel with price fluctuations.

An investment’s market value can fall before it is sold. Not having sold is not evidence that capital has been preserved or that a recovery is assured.

Do not use age alone to decide the risk you can take. Your actual time horizon, available funds and responsibilities belong in the review. If a fall exposes a gap between the original plan and your current needs, identify that gap clearly before considering a change.

Know what you own and where the risks sit

Make an inventory of the holdings you understand, their purpose and the relevant product information. Note questions about charges, access to the money and the risks described in the documents.

MoneySense discusses diversification across asset classes and across securities, industries or countries. Review whether your holdings are concentrated in one exposure rather than assuming that owning several product names makes the portfolio diversified.

This is a check of the plan, not a suggested allocation. Do not select a product simply because it is labelled a bond, fund or ETF, or because a price has fallen. Read its actual features and risks.

Understand a regular-investing plan before changing it

MoneySense describes dollar-cost averaging as investing a fixed amount at regular intervals, whether markets are up or down. It differs from deciding to buy whenever you think a price has reached its lowest point.

Regular purchases do not turn the underlying investment into a risk-free product. Review the amount’s affordability, the product’s suitability for your goal and the costs involved. A general description of the method cannot decide whether you should start, continue or stop a particular plan.

Put the review on one page

• Goal: what the money is for and when it is needed.
• Commitments: the household expenses and other cash needs it must not displace.
• Risk: the effect a loss could have on your responsibilities and goals.
• Holdings: what each investment does and where exposures may overlap.
• Product questions: costs, access and risks you still need to understand.
• Next step: the information or qualified advice needed before a decision.

If you need help applying the information to your circumstances, seek appropriate financial advice. MoneySense advises dealing with financial institutions regulated by the Monetary Authority of Singapore and understanding a product before investing in it.

Keep the completed note for the next review. The practical payoff is a clearer account of your needs and unanswered questions, rather than a prediction about the next market move.

Sources

• MoneySense: Putting Together an Investment Portfolio
• MoneySense: Managing Investment Risk
• MoneySense: Basic Financial Planning Guide

Sources checked 12 October 2026. This article provides general financial education, not personalised investment advice or a recommendation to buy, sell or hold a product. Investment decisions depend on your circumstances and the product’s actual risks and terms.