COVID 19 AND MARKET INVESTMENT
India is under attack from the pandemic of Covid-19. To break the chain of the dreaded virus, the Government has advised the Indian citizens to stay at home till the 14th of April. Only in an emergency or extreme necessity can one go outside but should practice soCial distancing at all times. Humans are social animals and will surely find it difficult to lockdown in the home during this phase of quarantine.
The quarantine, as optimists will tell you gives you two opportunities, one to reconnect with family and two to re-orient oneself with investments and sort out family finances.
Due to the uncertain pandemic, the market all over the world has been adversely affected. Do the volatile market conditions have many wondering what should be done next?
The most essential factor here is to remain calm and have patience. Instead of any panic move, investors should make the most of this phase by investing for the long-term. Indian markets are currently seeing a significant correction. Stocks are available at attractive valuations. Investors who come into the markets now have the potential to get good long term returns. Re-look at your finances, see if you have that little extra to invest in equities, and then take the plunge.
Lockdown is the opportunity for long term wealth creation- How?
It is very simple, work from the home environment has made us confined to be indoors but on the other hand, it defines a better work-life balance. Families are now spending all of their time at home, even during weekends. During normal course most of us would go out for dining outside, shopping, watching movies and spending time and money however with nowhere to go and almost all online shopping platform shut their services of non-essentials goods, therefore, people are saving.
We urge you to deploy this additional money and invest for your future. This is indeed the right time to invest in mutual funds. For existing investors, it is best to stay invested and strategize long term goals whereas potential investors should definitely invest now because the market valuations look attractive at the moment therefore buy when the price is low. Do not let the coronavirus pandemic become a hindrance to achieving your dreams, rather use it as a springboard to save more and invest more.
According to Market Experts There has been a fair correction in valuations. We have seen historically that investors have made good returns after 1-2 years from such bear markets. One should invest in good quality stocks that have decent financial strength, are being run by capable management and the industry they operate is not shrinking. They further advise “Existing investors investing via SIPs should not discontinue their SIPs. It gives the benefit of averaging on the downside. If one is underinvested as compared to optimal allocation, now is a good time to double up. Most importantly, Discipline is important in investment. Stay safe and invested.
The writer is an (Independent Financial Advisor (NSE & BSE Registered)
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