Effects of covid-19: What are the good and bad investments?

  In Blog

Covid-19 pandemic fear is causing major impacts in the world markets including share and stock investments. A majority of investors are analysing the effects of Corona Virus to avoid heavy losses. There are some things investors should keep in their mind before making any investments. It is advisable for the investors to re-shuffle their portfolio and make decisions accordingly. Since volatility is important part in investments, one should monitor the markets with special attention to avoid panic and other problems.

Is it wise to invest in Covid-19?

For long-time investors, it is a golden opportunity to increase their exposure in equity. In the same way, equity investors should consider allocating their portfolio towards multi-gap stocks and large caps. In the bond space, investors should give more importance to banking bonds, corporate bank bonds, and other bonds. Allocating 10-15% in gold assets is also one of the best ideas because it will perform well during stock market crashes. Another thing is that investors should think about rebalancing their equity exposure by increasing allocation to a large extent. It would be wise to look at equities and allocate capitals based on the risk profiles.

What are some good investments?

According to experts, investors should think consider buying fundamentally strong stocks at low levels. They can buy, sell, or hold certain investments for ensuring more returns. Some of them include pharma and healthcare stocks because they will get boost a boost in the future markets. It is also advisable to buy large cap stocks and good yield stocks for long-term investment purposes. Investors should consider selling low margin profit stocks as soon as possible. On the other hand, it is advisable to evaluate the markets with attention before making investments.

Knowing more about bad investments

Investors should know about the bad investments in detail before making a decision. It would be advised to avoid banking, finance, FMCG, NBFC, and metal sector investments for reducing the risks. People should hold-off before making any decision. They should decide what to make and then open their portfolio after evaluating the markets. It is imperative for the investors to control their emotions and evaluate the situations properly. Anyone who invested their money in equity mutual funds shouldn’t redeem their money. Instead, they should consider invest in good SIPs with long-term view. An investor should also talk to a portfolio manager or financial expert before making any changes.