Lockdown has grabbed our productivity by a leash. We all surely have cherished many skills amidst the lockdown – being a chef, fitness freak, artist within or the bookworm in you. If we are putting in so many efforts to make most of this lockdown time, then why are we letting our investments slack? The markets are highly unstable currently but, don’t let this be the reason behind not planning your investments in the right way when you had time in hand.
Mingling with your work from home routine, all of us have surely saved money that you require for commuting to work, eating outside, weekend outings and of course, the summer holidays!
Let’s assume the overall amount that you spend every month on your essentials is around Rs. 6000. And the amount that you spend on weekend outings, takeaway meals and movies is around Rs. 4000. Now that you are working from home, this Rs. 10,000 is sitting in your bank account absolutely idle. You can put this amount to a better use, let us find out how…
Mutual funds is a safe bait to stay invested in this unsteady markets. Make sure not to invest the lump sum amount into the funds. Split the amount into SIPs per monthly basis, this will help you to allocate your assets into the financial instrument and put you into the habit of staying invested regularly. For low risk investors, who are planning from a short-term perspective, it is recommended to invest in debt funds. And for high risk investors, who are planning from a long-term perspective, it is recommended to invest in equity funds.
We never know when the emergencies such as the current times may catch us by surprise. The world will take time to fall into place, but to survive till then you should have a contingency fund ready for at least 12-months timeframe. If you haven’t built an emergency fund till now, start constructing it now. Allocate a certain amount into your bank account in the form of fixed deposit or a recurring deposit. This will help you when you are in the need for money. It will also help you to be self-sufficient and be independent.
Ideally your investment portfolio should include equity and fixed income. You can also include 10% of your portfolio into Gold and the rest can include your equity instruments and other fixed income instruments. Choose alternative investment options to invest in gold such as Digital Gold, Sovereign Gold Bonds and Gold ETFs (Gold Exchange Traded Funds). This will save you from the efforts of storing gold in the physical form and choose the amount of gold you want to purchase.
It is better to stay prepared than fall into the trap of disaster. If you don’t have an insurance policies in place, then get them now. Secure your family should be secured in times of health crisis by investing in a health insurance. If you include insurance in your portfolio, you don’t have to wait for anyone else to save you from a monetary crisis. In case of life insurance, it is advisable opt for low-cost term plans if you have any financial dependents.
While investing for our short-term goals, we often neglect about our retirement. Ensure that you allocate funds for your grey-haired days. Start investing in NPS (National Pension System) which is a government scheme and can help you to create a corpus for retirement. You should be capable enough to take care of your future needs and don't depend on your children to cover your expenses. The earlier you start, the better the amount gets accumulated.
The lockdown has surely left us with ample amount of time, so study the financial instruments, chalk out your portfolio and make wise investment decisions. Convert these tough times into your secured future. Be home, be safe!
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