Money9 Helpline | Answers to all your queries related to investments amid Covid-19 surge

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If there is one financial lesson that Covid-19 has taught us again and again, it is the need to plan and manage your finances timely as well as effectively. At Money9, we strive to prepare you for such challenging times and help you better overcome them.

The Money9 Helpline, our endeavour to help people navigate through financial distress, hosted Poonam Rungta today. Rungta shared her valuable insights to address the financial queries of our callers from across India.

Rungta answered the specific questions put up by the Money9 helpline callers from across the country. She shared advice on effective tools available for them, based on their questions and portfolios.

Here’s a look at some of the questions:

Caller 1- Amit Singh, Mumbai: I invested in Rs 50,000 in Fixed deposits for 2 years but in the month of August 2020, I broke the FD to invest in the stock market in the pharma sector. I invested in Aarti Drugs, but even after 8 months of investment, I am in a ‘no profit no loss’ position. Should I invest in any other mutual fund, or keep it as it is or put it back in FD. Please suggest.

I also have Mirae Asset Emerging Bluechip L&M Cap and Motilal Oswal 35 Multi-cap with a monthly SIP of Rs 2000 in each fund.

Rungta: From your case, I realize that you belong to a classic category of investors who is a little confused about the financial investment tools and options available in the market. My request to you and all other investors who want to invest their money in the stock market or mutual funds or any other tool is that always take professional guidance. Take help from an expert and understand the fundamentals of the sharemarket and market dynamics first. Before investing, you should first understand your goal for investing and the time frame within which you want to build your money. Do not be influence by facts from here and there.

Caller 2- Anand Sharma, Nasik: With the second wave rising, the pharma sector is experiencing another boom, I want to start a SIP of Rs 1,000 a month in a pharma fund for 5 years. Is it a good option or not? Please suggest. I am already investing a SIP of Rs 1,000  in pharma fund for a period of 5 years, Rs 5000 SIP in Motilal Oswal midcap for 3 years, and Rs. 4000 in Kotak Flexicap for 2 years.

Rungta: There is this major sentiment seen among people to invest in the pharma sector, because of the pandemic led boost to the sector. But you should remember that markets are volatile by nature and when you invest you must always think of long-term gain returns. Do not get influenced by trends or market waves, have patience and understand your risk appetite. It is important to first understand your own goal for making the investment and what is your own time frame. Then after understanding that, and given the pharma sector’s performance, you can invest a quotient of your investment, for example, 10 % of your budget in the sectorial fund.

Caller 3- Farah Khatun, Kolkata: The funds where I have invested are Adity Birla Small-cap and Nippon India Multicap. Should I hold on to them even if there is a huge dip in the market, or should I sell before I make a loss? What should be my approach?

Rungta: I would suggest you hold on to your investment as market dipping during the holding tenure, increases your profitability. It will increase your units and improve your average.

Watch the full episode here: