Firstly we all know that due to Covid-19 pandemic we have been advised to stay at home, lock ourselves indoors and venture out only if necessary. This is easier said than done, we are social animals and will surely find it difficult to isolate, thus it is normal to feel anxious or overwhelmed during this phase of quarantine. However social distancing is a mandatory step, we urge to you take in order to prevent spread of the deadly coronavirus.
The quarantine, as optimists will tell you gives you two opportunities, one to reconnect with family and two to re-orient oneself with investments and sort out family finances.
Besides the lockdown, coronavirus has also been impacting markets world over. Volatile market conditions have many of us wondering that what we should do next. The most essential factor here is to remain calm. Instead of any panic move, investors should make the most of this phase by investing for the long-term. Indian markets are currently seeing a significant correction. Stocks are available at attractive valuations. Investors who come in to the markets now have the potential to get good long term returns. Re-look at your finances, see if you have that little extra to invest in equities, and take the plunge.
Lockdown is long-term wealth creation opportunity!!!
How you ask? Simple, work from home environment has made us confined to our homes but also on the other hand it defines a better “work life balance”. Families are now spending all of their time at home, even during weekends. Normally most of us would go out for shopping, watching movies and spending some time & money on dining out at fancy restaurants, however with nowhere to go and almost all online shops shutting their services of non-essentials; people are saving up!
We urge you to deploy this additional money and invest for your future. This is indeed the right time to invest in mutual funds. For existing investors it is best to stay invested and strategize long term goals whereas potential investors should definitely invest now because the market valuations look attractive at the moment. Buy when the price is low! Don’t let coronavirus become a hindrance to achieving your dreams, rather use it as a springboard to save more and invest more.
We would like to conclude by sharing some insights by Mr. Atul Kumar, Head - Equities, Quantum AMC. He says “There has been a fair correction in valuations. We have seen historically that investors have made good returns after 1-2 years from such bear markets. One should invest in good quality stocks which have decent financials strength, are run by capable management and the industry they operate in is not shrinking.” He further advises “Existing investors investing via SIPs should not discontinue their SIPs. It gives the benefit of averaging on the downside. If one is underinvested as compared to optimal allocation, now is a good time to double up. Discipline is important in investment. Stay safe and invested.”