Where to invest money in covid-19 pandemic?
Updated: Sep 15, 2020
Currently world is facing a very crucial economic slowdown phase and no one knows when this will end. Covid-19 pandemic not only slowing down entire world's trade & economy but also it is affecting personal savings and regular earnings. Some people has lost their jobs and many people already got a salary cut. Independent business segment also facing this heat, as a result we are seeing many small and medium scale business is getting shutdown across the country.
In one side people's earning is getting slashed and the other side their existing expenses are burning their savings. So to overcome with this problem, either an individual has to look for some sort of side income or a safe investment which not only secure their savings but also that can help to generate some passive income. Now questions is where a common person can invest?
When corona virus started from China and spreads towards rest of the world almost every economies contracted due to its side affect; on the other hand uncertain situation in US due to elections also made many investment institution to chose Gold as a safest instrument. In past 6 months Gold has gone up by 30-40% and still its looks attractive and a safe segment. In my opinion individual can invest 20-30% of their portfolio amount in Gold for next 3-6 months.
Mutual fund has many variations like debt funds, equity funds, hybrid funds etc. Selecting a mutual fund is dependent upon the risk appetite of an individual investor. For a moderate risk portfolio a person can invest 40-50% of their investment into equity or hybrid mutual funds and 30-20% into debt funds. We have seen in last 6 months as on average equity funds has gone from 15% to 20% upside and debt fund on the other hand gone up to 6-9% up. But it's totally depends upon the selection of fund. (You can contact me for any suggestion on choosing a mutual fund).
Now this is a segment which can be a big beneficiary in post covid-19 era. We are seeing a great downfall in this sector from past 8-10 years but I think covid-19 pandemic is going to change the investors mind and due to lots of infrastructural development push by the government, real estate sector can boom again. In my opinion this sector will take a u-turn growth between September 2020 and July 2021, so its better to pick specific regions for investment and they can expect an upside growth of more than 40% after 2 years it self.