COVID-19: To Invest or not to invest?


Investing money will allow you to grow it. There are different types of investments mostly investments on vehicles, certificates of deposits, stocks which give a return for the money to have invested over a  long time. Most people invest in a view to building their wealth.

During this pandemic Covid-19, people are under the pressure of job losses, pay-cuts, and cash-crunch that leads to postponing their investment decisions. In this pandemic situation, people mainly focus on daily needs rather than investments.

One of the positive impacts that Covid-19 has created is that it taught us how to use money more efficiently, people have been forced to learn on where to spend their money and to classify what’s unnecessary. Many people have shortened the way of spending money because of the anxiety about the future. The spending habit of people has entirely changed. Most Indian’s have savings, but these savings are only emergency funds. So they cannot invest this money in a long term investment plan. They can save the money in banks as fixed deposits which will be a safe option. Now in this situation, it is better to plan and invest.

Public markets have crashed and venture capital has reduced their spending and began to plan their investment habit. For the business streams, their expectations towards the year 2020 were higher. But then COVID -19 broke out and everything went out of hand. So the start-up funding for 2020 dropped by 50% as compared to the last few years.

The measure to adopt in this stage is to deposit in gold and in FD the investment in the current situation will lead to making a  negative return due to instability of market volatility, but it is always better to make deposits in gold and FD returns will help us to limit our overall loss. It is better to avoid high-risk investments.

The pandemic has brought a correction in the equity market also. At the present stage, the global market and domestic market is in an unpredictable stage. In  2001 there was a dramatic global market fall to equity shares and in 2008 there was a dramatic global financial crisis and now in this current situation, COVID-19 created fear and disappointment of the equity market by declining continuously with double digital fall.

In this ongoing crisis, there is an opportunity to exit old investments and enter new ones. Each decision must be based on the financial plan. So, as a small investor, you should invest on the basis as per your life goals.


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