Mutual funds remain the foremost attractive tool of investment during COVID-19 followed by equities as returns are healthy during this asset class, consistent with a survey by Financial advisory firm Findoc Group.
“The objective of the survey was to know the preference of the investors and what they expect from their investment.
These are uncertain times for the capital markets. The present situation caused by the coronavirus pandemic is unprecedented, and that we do not know how healthy our investments are.
It’s natural for us to appear for methods to safeguard our financial health. Global markets are witnessing a fall within the value of instruments across the board. We don’t understand how fast or how the markets will endure the blow.
This uncertainty includes investments in mutual funds. In such times, it’s best to relook at the basics of the market and depend upon them. Rather than speculative investments, we want to form smarter and well-thought choices by looking at our financial needs and expectations. Taking a conservative investment approach is advisable, and you ought to only make investments in mutual funds in step with your risk appetite.
Here are some recommendations on the way to navigate the market during the lockdown and make investments in mutual funds. While investments in mutual funds are essential, you must also put aside money for emergencies. Having an emergency fund alongside your investments in mutual funds grants you plenty of peace of mind.
This fund should be enough to require care of any medical or family emergencies that will arise. The dimensions of your emergency fund should be enough to hide six months of living expenses.
Do not use your emergency fund for any purpose apart from actual emergencies. These funds don’t seem to be used for any reason unforeseen expenditure. Having a separate emergency fund will facilitate you to have a far better appetite for risk while making investments in mutual funds.
While you’re locked down in your homes you’ll still keep investing or make a fresh investment in an exceedingly investment firm scheme of your choice using the net channels. You’ll log in to the net portal of the fund house of your choice or your checking account to access the investment section.
While it should look like an unwarranted risk in these troubled times, you ought to not twiddling your thumbs from continuing to form investments in mutual funds if you’ve got sufficient monetary strength.