Covid-19 has turned the world topsy-turvy.
Everybody is worried about catching the deadly virus, and until the threat of this disease passes, we better follow safety rules with due diligence. The lockdown imposed in our country was one of the strictest in the world and created a humanitarian crisis. But that is just the tip of the iceberg.
Covid-19 dealt the economy a blow with a figurative sledgehammer. Now, it remains to be seen what its impact will be on various sectors. Currently, however, markets are faltering and will take time to recover.
So, as an investor, what should your attitude be during this period?
What should your modus operandi be?
Here are some tips to keep in mind while investing this pandemic season. These investment tips will help to shape your outlook and frame a contingency plan for the near future.
7 Strategies to Follow While Investing this Pandemic Season
In such troubled times, you might ask where to invest my money, given that the markets are all a rumble with bad news.
Here are some investment tips which will give you a fair idea about where to put your money.
- Take stock of the hospitality market
Aviation, hospitality, tourism are all markets that are suffering. It’s a good idea to buy their stocks while they are cheap since they are likely to boom once the threat of the virus becomes a thing of the past.
Everything that we took for granted now feels like a luxury. So, if you are looking to invest long term and are patient to sit out the lousy spell, the shares of these sectors are an excellent place to put your money in. Invest now!
- Companies changing business model
To take advantage of the changing market dynamics, several companies changed their business models during this period. They used to provide services of one kind now have had to diversify to stay competitive. So, these companies will be looking for new investors.
To bag an early investment stay updated on those companies that have diversified during this period. Keep a weather eye out for the news and pounce when the time seems right. SBI Pharma is one such example of an investment that shot up during this period.
- Fixed deposits
When all else fails, opt for fixed deposits.
They are offering around 5% for a year, and this amount is better than nothing. You can put in approximately Rs. 10,000 a month and earn steady returns even during the pandemic.
While fixed deposits are the fuddy-duddy investment choice, they are looking pretty safe during this chaotic period, so for safe investment needs, choose fixed deposits.
- Watch out for start-ups
During this uncertain period, it’s an excellent idea to scour the news for start-ups. You can get the shares at a much lower value now, and once the situation stabilises, the value in the market will only look to grow. As a long-term investment, start-up shares are one of the wisest investment tips.
As a beginner, you might want to consider taking a glance at the guide to investing before you begin your journey. The guide will help you to understand how to start, continue, and progress to earn the maximum profits.
- The last bastion—Real estate
All hail the grandee of investment!
Real estate will always have takers no matter the situation. There’s a simple reason behind this, the land is not freely available, and everyone needs a home to park their bottoms. While companies now grapple with the Covid-19 situation, wondering if they should keep brick and mortar offices running, real estate will only boom once the pandemic situation dies down.
- Sovereign gold bonds
Not physical gold. Not gold ETFs.
Opt for these RBI issued SGBs and feel content that you have put your money where it matters. It seems bullion is the only safe bid to ride out high inflation and SGBs negate the storage and purity concerns of real gold.
- Pharma sector
It’s a bit elementary. There is a COVID-19 crisis on. We need investment in pharmaceutical endeavours.
Many pharma funds reaped big dividends when they were previously struggling to give competition. Those who sold their pharma funds must be gritting their teeth and ruing their choice. That’s why, be patient. The Covide-19 situation was a black swan event, and the minority always gains in such cases.
These investment tips are sure to see through this lean period. There are droughts and rough patches in life. The pandemic situation is one such blip on our usually smooth horizon.
But until the rains come again, lie low, and wait for the jungle song.