6 Investment Decisions to Make During Coronavirus Pandemic

Coronavirus pandemic has been changing the economic and social atmosphere. Countries across the globe are fighting to keep up with economic stability. Financial markets worldwide have been hit severely, five times more than normal. Investors are in a dilemma because of the increasing Volatility in the market.

As a mutual fund investor, if you are in a state of panic, it is advised you to follow the following investment tips:

1. Don’t Panic

The current situation is not to create a panic, but to maintain calmness. As an investor make use of your past experiences. Keep in mind the situation and think about the situation one year down the line before disrupting or withdrawing your Portfolio completely.

Take the systematic accumulation and become a long-term investor. Experts suggest that there might be good growth by 2021.

2. Don’t withdraw investments from global funds

The situation right now might seem unfavourable if you have invested in global fund. Countries are in a state of lockdown. However, the economies in every country differ and they are dealing with their economic situation differently. This is a plus point for those who have invested in global funds. Their returns depend on the same. Therefore, try to make a combination of both national and international fund before taking a major step to quit.

3. Don’t predict stock success

While buying low price stocks might seem tempting enough to purchase, refrain from doing so. Investors are bound to feel that these stocks might provide great returns down the line. Investors should seek advice from their financial advisors regarding the matter before jumping to a quick decision. This is crucial, especially when the economy is in turmoil. Commit yourself to complete fund research before making a choice for investment.

4. Rebalancing Portfolio

During an economic slowdown, investors should rebalance portfolios on a periodic basis. Refrain from being overtaken by fear or greed at this point. Consult with your financial advisor and buy an equity asset than has become underweight by selling the overweight asset. Rebalance so that you become underweight on Equity Funds.

5. Don’t discontinue investing in SIPs/STPs

Investing in the Systematic Investment plan (SIP) and Systematic Transfer Plan (STP) is one of the most ideal ways to invest in a mutual fund, especially during a recession. It offers benefits of the advantage of rupee cost averaging wherein during a market fall you are able to purchase more units. Additionally, it allows you to be disciplined with finances and monthly investments.

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6. Don’t shift focus away from financial goals

It is highly-possible to fall prey to panic during a global recession. However, make sure you stay calm and focus on your Financial goals. Remind yourself of the reason you prepared those financial goals and why you’re investing for it. Reanalyse your short-term and long-term goals and stick to them. Become familiar with your Credit Report and make efforts to understand it thoroughly. Understand your assets and debts before making a big decision.

Maintain Accountability with a financial advisor, spouse or a friend and get all the support you can to stay focused on your goal.

Conclusion

With the global panic increasing every day due to coronavirus, ensure to look at the positive side of the situation. Find or create solutions to keep yourself motivated through this season of panic and keep investing. Don’t make rash investment decisions and make sure to keep your financial advisor or a trusted friend in the loop.