BEST INVESTMENT IDEAS DURING COVID TIMES

BEST INVESTMENT IDEAS DURING COVID TIMES

The times of COVID-19 is a testing time for everyone around the world. With the change in schedule, lack of social life and increased problems, anxiety levels have been redefined. However, one should always keep in mind that there are a few things you still have under your control. You can be a responsible citizen and take good care of yourself and your family while following all COVID safety protocols. Further, being cautious of your finances, choosing right financial tools for investment and understanding money management is even more crucial to tide through the pandemic. Along with physical immunity, you must build financial immunity too. The best investment advice Commodityface can give you is to invest in knowledge before you risk your money on those financial tools that you think might give you good returns. People work hard to earn their money and invest in equities, mutual funds, and various other places just by looking at their popularity and return size often becomes the victim of their own greed. Often those places that give good returns have high risk potential and majority of them don’t assure safety of your investment. It is heavily recommended to invest only on those places where you have complete knowledge and confidence.

Keeping all of this in mind, people can invest in two ways to make best use of their financial resources to get the best returns

Here are some ideas that people should follow which help them in the long run and during emergencies

  1. Knowledge about Financial assets
  2. Insurance
  3. Creating emergency corpus
  4. Having liquidity
  5. Paying off your debt
  6. National pension scheme

After If you are able to put some extra money aside, even if it’s just a little bit … should you save it or invest it? Here are some questions to ask before you make any major money moves.

  1. Are your emergency savings fully funded?

Start with your emergency fund. It should be stocked with three to eight months’ worth of living expenses before you invest anywhere. Make sure you have enough money socked away to cover those expenses, like rent or mortgage, utilities and basic groceries. It is the time to reconsider how many months you want to save for. Given the current economic crisis, think objectively about your job security. It might not be a bad idea to set aside a few extra months’ worth

     2. How much risk can you tolerate?

If you have a healthy emergency fund and you’ve thought carefully about your financial goals, you can consider investing. You can calculate your risk tolerance, your ability to withstand the idea of losing money. Your investment should be based on a couple of factors, including your age, your time horizon and how much money you can invest.

   3. How much cash do you actually have?

You don’t need a ton of money to save or invest. Saving even as little as Rs5000 or Rs10000 per month is a good habit to cultivate. There are many investment plans you can consider for both long and short term requirements.

People who are looking to invest in financial assets to get good returns in future can consider these following places

  1. Equities – Investing in equities is one of the finest possibilities, because top-tier companies are always investing in growth and are therefore safer investments for investors. Choosing the appropriate stock and determining the best time to enter and exit is tough. Investors who want to build a strong portfolio should first grasp the company’s future growth potential and current financial status. Before you begin investing in stocks, you must first open a Demat account and study the fundamentals. Remember that diversifying your portfolio might provide you with higher returns and lower losses than placing all of your money into a single investment.
  2. Mutual Funds – Mutual funds are a sort of financial asset that collects money from investors to invest in stocks, bonds, and other money-making assets. Money managers with a thorough understanding of the market run Mutual Funds. The fund’s profits and losses are shared among the shareholders.
  3. Equity Mutual Funds – Mutual funds where returns are largely dependent on manager’s ability to generate profits/returns
  4. Debt Mutual Funds – Mutual funds where the funds are invested directly in fixed-income assets such as government bonds, Treasury bills, commercial paper, and others. They are low-risk, low-to-moderate-return investments.
  5. SIPs – A Systematic Investment Plan (SIP), where you can regularly invest a fixed amount in your preferred Mutual Fund scheme. Here, a fixed amount is deducted each month from your savings account. This amount is then invested in the Mutual Fund of your choice.
  6. Bank fixed deposits – Commonly known as FDs where you can invest your savings for a minimum of 1 year.
  7. Public Provident Fund – A scheme where you need to give a certain amount of investment every year for a minimum tenure of 15 years. The total invested amount along with the compounding interest will get credited in your account after the end of the tenure. It is safe, tax saving and long term investment with
  8. Real Estate – In this booming market, when the prices of real estate are touching a bottom line, investing in it can give long term benefits.
  9. Gold – Processed gold and gold bonds, both are good investment options. But gold in the form of jewellery has its own concerns such as safety and high cost. The ‘making charges’, range between 6-14 per cent of the cost of gold and may go as high as 25 percent in case of special designs. Other way of owning gold is via paper gold. Investment in paper gold is more cost-effective and can be done through ETF’s
  10. Cryptocurrency –  Digital currencies are getting extremely popular. Indians already invested more than $5 Billion since its launch. Keeping this in mind, it is also said that government is also trying to launch its own cryptocurrency in India next year after preparing the proper code of conduct. This will be a huge step towards promoting digital currencies in the country.

Post Comment