The COVID-19 pandemic and the subsequent lockdowns imposed by government has shattered the Indian economy and the Indian share market has been quite adversely affected as well.
Indian market closed up volatile and unpredictable 2020 on a strong note with the increase of approx. 15% each on benchmark indices while the small scale industries and mid caps outperformed. That, however, doesn’t mean that you’re out of investment options.
There are still plenty of areas where you can invest and grow your money, but make sure that you proceed carefully and go for a staggered approach to reduce risk.
A long- term high value investment. Buying a house is typically seen as an accomplishment and is one of the superiority of Indian families. India’s real estate institutional investment came down in the Jan–March period of 2020 due to covid-19. However, the recent fall witnessed in the home loan rates in India is expected to provide boost to this investment category.
When one thinks of mutual funds, they also think of market conditions thanks to the countless time we hear the disclaimer on the risk of investing in mutual funds. Investing in Pharma, FMCG mutual funds can specially prove to be advantageous amidst the pandemic, as from now governments are likely to increase spending on healthcare. Mutual funds are expected to rebound back stronger once the economic recovery starts.
After a muted performance for the last five years, the pharma sector emerged as a winner during the pandemic and proved to be saviour for the investors with the substantial return in 2020. There are high hopes that the sector will remain focused in 2021 as these are an ever-increasing demand for vaccines, immunity boosting supplements, medicines, medicinal equipment.
During this quickly spread of covid-19 and an increase in restrictions on movement, our daily lives have required more time at home and more usage of data for work and leisure, resulting in a significant impact on Telecom sector as there is huge demand for internet connectivity, high internet speed, increasing network resiliency and reliability from customers, telecom will likely remain among well- performing sectors.
The automobile sector witnessed a remarkable improvement in their respective volume during the last six months led by pent -up and festive demand. Furthermore, the importance of personal mobility owing to social distancing need also aided their volume.
One has to understand that during this tough times, being adventurous could cause more harm than good. A better approach would be to stay as careful as possible while investing, at least for the coming few months. Also, make sure that you do not put all your money in one sector; so invest in a staggered manner for added safety, and look towards long- term investment as the effect of high and lows is relatively neutralized in the long term