38404Google launches all in one wallet
Investment decisions should be made in such a way that your money grows but at the same time, you are able to withdraw that money during a crisis, says an expert
Representative Image
The Covid-19 pandemic has led to many people losing jobs, salary cuts, and even businesses shutting. Amid this unprecedented crisis, how should you manage your investments?
According to Pankaj Mathpal, founder and CEO of Optima Money Managers, liquidity is cardinal amid the crisis. Investment decisions should be made in such a way that your money grows but at the same time, you are able to withdraw that money during a crisis. Second, having insurance is also important so that you are not forced to spend your savings every time you go through a crisis.
“It is important to have an adequate insurance cover, especially during these times when medical expenses are huge. Considering this, one must increase their health cover. One can also use super top-up policies to increase their insurance coverage. Also, in the case of dependents, one must consider the term insurance,” Mathpal told Money9.
Amid the second wave, one must also diversify their portfolio. Mathpal said that one must include equities in their portfolio. Investing in mutual funds can be a good option. Considering the current scenario, one must invest “through SIP or STP in a staggered manner.” Beginners can also start with index funds.
Should you consider investing in share markets?
People who haven’t started investing in equity markets should refrain from starting the investments directly through the share market. They can start by investing in “equity-oriented mutual funds for the long term.” Start by investing in SIP, Mathpal said.
He also said that if an individual wants to start investing for a specific goal then investing in “equity-oriented mutual funds can be a good option” but for unforeseen emergencies, one must always keep some liquid funds aside.
Those who have been investing in equity markets for quite a time can also try adding health care funds as the pharma sector is seeing a lot of momentum. It is pertinent to note that one must only include 10-15% of their portfolio in secular funds.