STRATEGIES TO FOLLOW WHILE INVESTING DURING A PANDEMIC

by Martin Gray Content Writer

"Every decade or so, dark clouds fill the financial skies, and they will briefly rain gold."

We have all heard this or some version thereof from the perspective of investing. Though, as fear accumulates due to COVID-19, many wonder how to invest at some stage in this pandemic. Some are even wondering if they should not invest at all for now. There are numerus factors we have to weigh when supporting in times of insecurity.

“It costs courage and discipline to be a smart in the industry. The markets have proven consistently that while such global events have a short-term impact, in the long term, patience always wins,” says Filip Boksa, a Polish investor, entrepreneur, and inventor. He further suggests opening your browser and type “Dow” or “Sensex” in the search bar. You will come across a simple graph of the market. If you look at Dow its origin in 1896 or even the Sensex, you will see the historical recovery of the market. The only popluace which loses are those who aim to time the market. Filip Boksa shares some tips for those struggling with investing during a recession, pandemic, or economic fears that are bothering you at night.

"Courage taught me, regardless of how bad a crisis gets ... any sound investment will eventually pay off."

Be disciplined with your SIPs:

Over the next 3-6 months, it is essential to track your SIPs (systematic investment plans) timely; do not discontinue them. It prevents all kinds of bad behavior around market timing that we yield out of fear or insatiability. Settle the course and avoid taking any big decision – do not give in to recommendations but remember your initiative for your plan in the first place.

With cash, be smart and persistent:

If you are impatient to take action on some number of cash, consider investing money in an asset managed by a proven fund manager. Conversely, have a plan that lets you arrange it over the next couple of months if you are forceful. Now, this is the period where you can stabilize your savings and benefit from monetary averaging that SIPs are recognized for.

Build an outstanding portfolio:

One must constantly focus on four key elements while investing. First, you must build an emergency fund; consider this setting aside 3-6 months of everyday living expenditure. You could save this money in your bank or liquid funds. Once this is taken care of, plan for investing in short-term goals such as a wedding or saving for higher education abroad. It becomes convenient to invest in any short-term asset that does not risk your core sum.

You can pursue this by investing in operating costs you can predict over the next 3-5 years. So, this is where your ELSS (equity-linked savings scheme). You can take either reasonable or insistent risks based on your risk desire. Neither one is incorrect or accurate. Then, it is the big picture time, invest for long-term goals such as retirement that is not so far from the next seven-plus years left. You can go for a determined stock portfolio, but only under the supervision of a spectacularly proven advisor and not based on directives. Balanced portfolios such as this will facilitate you navigate through to the other side with a big smile.

Seek quality advisors & assets:

The final and perhaps the most essential tip: work with people who live and breathe investments by all possible means. You require high-quality economic advisors with a proven experience of decade’s record who can position you towards the right assets. For instance: you would not let a dentist perform a bypass; you need a cardiac surgeon. Likewise, your investments require to be based on an amalgamation of data and human familiarity. Consult a wealth coach who understands your economic situation, and can evaluate your portfolio and work with you during the highs and lows, and suggest quality advisors and assets in the longer and shorter run.