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Tata Capital > Blog > Wealth Services > Money Lessons from the second COVID wave

Wealth Services

Money Lessons from the second COVID wave

Money Lessons from the second COVID wave

As the second COVID wave has India in its tight grip, the stock markets and other investment avenues are experiencing significant volatility. With the daily tally of positive cases running in lakhs, a panic wave around monetary concerns like, dipping share prices due to suddenly altering market conditions, have investors fishing for sound financial advice.

Given the uncertainty today, you too are perhaps concerned about the value of your financial portfolio. Fret not! We are here to help you steer your finances in the right direction with some investment guidance.

Boost Your Exposure to Blue-Chip Investments

It’s no secret that blue-chip stocks are linked to corporations that have the ability to stay profitable during good and bad times. Given how things have turned volatile with the second COVID wave, increasing your exposure to blue-chip stocks will prove to be a worthy investment. If your financial portfolio lacks blue-chip stocks, now is the time to load invest in them.

Not sure how to directly acquire these stocks? Fret not! Choose a blue-chip fund. These funds are managed by expert funds managers who invest your money in top-notch blue-chip stocks through mutual funds.

Acquire Fixed-Income Assets

Even if you have the stomach for high risk and high return investments, with times like these, opt for stable investments. Hence, build a corpus of fixed-income investments such as Corporate Fixed Deposits, Debentures and Bonds. You can also consider high-rate debt funds that can be liquidated overnight.

Remember, accommodating fixed-income investments in your financial portfolio will offer stable and fixed returns regardless of the equity market situation. 

Additional Read: Do the fundamentals of investing remain the same after a roller-coaster 2020?

Consider SIP Investments

Choose to invest in mutual funds through a Systematic Investment Plan or SIP rather than in lump sum. SIPs allow you to hedge your money over time in mutual funds. When the market is slow, through SIP, you end up purchasing more units and buy fewer MF units when the market is thriving. In the end, you level out, due to rupee cost averaging.

Additional Read: Why are SIPs an Ideal Choice for the First-time Investor?

This advantage is unavailable should you choose to invest in a lump sum in mutual funds. Given the second wave, it is ideal to invest in parts as you may need substantial liquidity for times unseen.

Set aside an Emergency Corpus

If you have not learnt and implemented it in the past; it is still never too late. With the second wave setting in a full swing and the chances of facing an unanticipated expense such as illness or a loss of income increasing. It has become more and more important each day to keep aside at least 3 to 6 months of your expenses as an emergency fund.

To Sum Up

Know that the second wave of COVID-19 is not permanent, but until it lasts, you must shield your financial investments from taking a fall and continue making smart investments. If you are looking to recompile your financial portfolio with the help of a trustworthy expert, turn to Tata Capital Wealth. We have the prowess required to nurture your wealth even through the toughest of times.

To know more, get in touch with us today!

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