Placeholder canvas

Investing in times of pandemic

Date:

Wondering where to invest your surplus funds when stock markets are crashing? If you are among those who have retained your income via salary, business or rental income when the economy is slowing down due to corona induced lockdown, thank your lucky stars and count your blessings.
And if you want your money to work harder, remember that investment strategy should be one that caters to your short and long term goals.

First priority: Contingency Fund

Woman with coins in jar

Gaurav Mashruwala, a leading financial planner says, “First ensure that you have a contingency fund in the form cash or saving banks linked fixed deposits to meet your expenses for 3-6 months in case you have no income in face of job loss”.

If you do not have insurance, it is best to put aside money to secure your family in your absence by buying a term plan. Even if your employer provides you with a health cover, do consider buying another health insurance plan for the family / top up your existing health cover for adequate coverage in times of a pandemic.

Rethinking your budget planning

Lionel Messi and his family

The way you draw up your budget may change drastically in the new world now. Do you need to buy a new car if you will be working from home? Do you need to spend more monthly on a high-speed data plan? Should you be investing in your dream house now, or live on rent till the economy stabilises? “If you decide to adopt a conservative approach, consider putting your extra funds into a zero risk or near zero risk asset like savings deposit or AAA rated debt funds”, says Amit Kukreja, an investment advisor.

While banks are offering moratoriums on EMI payments, should you avail of it your total outgo stands to increase. If it is possible try to reduce your liabilities and prepay loans wherever possible.

Hit by stock market crash?

If the stock market volatility has got you worried about your SIPs, financial planners would recommend you keen an eye on your medium and long term goals. Volatility is inherent in stock markets, but the risk pays off handsome returns in the long term. Do continue your SIPs but resist the urge to go overboard on equities, if your current investments suffices to meet your long term goals.

For retired folks who have a monthly pension to fall back on, Gaurav Mashruwala suggests safe investments like post office scheme, bank fixed deposits and highly rated debt funds. Equity or gold funds could also be a good choice if one is looking for diversification and inflation-beating returns.

At a time when there is so much need across different quarters of the society, if you have the means, do consider contributing to reliable NGOs who are working with communities and individuals who have been badly affected by the pandemic. Gratitude and the goodwill of your karma will be priceless and the satisfaction you get may exceed the returns on any investments.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Subscribe

Popular

More like this
Related

Fact Check: Mohan Bhagwat-Led RSS NOT Supporting INDIA Bloc

A video alleging that the Rashtriya Swayam Sevak Sangh...

India’s ‘Election King’ Prepares For 239th Bid Despite Record Of Defeats

New Delhi: K Padmarajan, a 65-year-old tyre repair shop...

Robert F. Kennedy Jr Chooses Nicole Shanahan As His Running Mate For 2024 Polls

Nicole Shanahan, 38 is a California lawyer and philanthropist, and brings fresh energy to Kennedy Jr's bid, focusing on issues such as women's reproductive science, criminal justice reform and environment

US Reiterates Call For Fair Legal Process On Kejriwal’s Arrest; Mentions Cong’s Frozen Accounts

New Delhi: The United States reaffirmed its stance on...