Who loves uncertainty? Well, no one does. But the important question is, in times of uncertainties like the Covid-19 pandemic, which investments can give good returns? Here, it comes.
Stock market : As you must be already knowing the stock market in recent times has shown unpredictable growth in India. India’s young adults are inclining towards the stock market more and more. So, it can be a good investment option as market capitalization has increased by noticeable numbers.
Further, you should invest in leading companies in the particular sector. Pharma, healthcare, IT, etc. have so far done well. It is expected that other sectors like hospitality, automobile, infrastructure, etc. will do great in the future. If you are doing investment in the stock market, then it should be done in different sectors.
For example, if you have all of your investments in steel and if the prices of steel have declined, then your investments will be greatly impacted. But, if you had investments in oil, pharma, etc. sectors along with steel, then it will not create much impact on your portfolio.
Mutual funds: Other than the stock market, mutual funds index funds are another option. Mutual fund index funds invest in the listed companies of NIFTY and SENSEX. And recently, the stock market is doing good. So, it can prove to be a good option.
The government is trying to boost the various sectors by taking different steps, as we have been witnessed in the case of the real estate sector. Major steps in the direction of growing the real estate sector have been taken by different state governments. So, it is expected that the sectors which are impacted due to pandemic will be restored, it may take time. But, certainly, they will.
We can conclude that “Diversification” is a tactic that comes to aid almost all times. You should adopt diversification, not only in pandemic time but also in times of more certainty. Your portfolio should have investments in stocks, bonds, etc. If you want to go far, then awareness regarding the market is very important. Then only, you will be able to take the benefit of a fluctuating market.