Wealth Creation in Uncertain Periods

Kerala has been under lockdown since 23 March, a day before the nation-wide lockdown, when 28 coronavirus positive cases were reported from the state.

Now extension of nation-wide lock-down is being discussed at various fourums and a decision at highest level may be known by today evening.

During these kind of difficult times, what investors should be doing?

1. Investment is futuristic and goal oriented activity. So many of us have certain goals which are very near to realize, certain are longer term. As a general rule real time near goals needs investments to be harvested and moved to more liquid options. Then provide for double amount in urgent category to face any contingency. 
2. Regarding long term investments, timing the market may be risky. market may remain illiquid, more than you can remain solvent
3. Do not worry about SIPs too much. you have no income, yoiuu are not investing, you are not having additional units, no liability is added by itself
4. Worry about EMI. follow govt instructions and taht of your creditor; seek time, reduced interest, morotorium as the case may be
5. Children get enrolled into short term courses. skills upgradation keep them growing.
6. Equity investments give long term returns. one needs to explore within the means. First take care of precautions to remain alive and come out this crisis. Then only you can enjoy the fruits of your investment. One needs to concentrate more on probabilities dynamics. Explore the situation whether it is the best time to take a bigger exposure to equities and when it will be appropriate to sell and move towards the exits. The stock market has surged in the last few days with the Nifty near its 52-week high. Nifty has gained nearly 6% in the last month but it has given negative returns over the last 6 months. The Nifty Midcap 100 Index has gained more than 8% in the last one month, but is down 7.5% on a year on year basis (as on March 15).View the news, just for information. Fix a time for updation. Reviewing your investment is a separate decision. 
7.Maybe you’re familiar with the concept of money mindset or maybe you’re convinced money is all black-and-white, simple math. But even for the most financially-savvy of us, our emotions, self-worth, and sense of safety have a huge impact on how we interact with our money.


Happy Investing