Has the lockdown and the volatile economy got you worried about your finances? Do you like us, feel perplexed about how the financial situation will evolve? Well, worry no more. We rounded up your queries and got crucial questions answered by the experts at Groww, one of India’s leading apps for direct mutual funds investments. So while you stay home (and save all that extra money), here are tips to shape up that bank account.
During This Lockdown, Get Investment Savvy & Become Financially Smart!
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Why is the market down right now and how volatile is the market looking post the lockdown period?
With the current Covid-19 situation and the subsequent global lockdown, it is no surprise that businesses world over are affected. Simply put, this has resulted in a chain reaction, leading to the downfall of our economy. As a result, when businesses start opening up again, expect economic activity to pick up. However, it will take a while before it reaches the pre-lockdown levels.
Is this a good time to invest?
Studies show that there is actually no good or bad time to invest, and the best returns have been earned by investors who kept investing through ups and downs. When it comes down to investing, Groww suggests sticking to investments via SIPs (Systematic Investment Plans) to get the best results.
Which are the best funds to invest in for tax saving purposes?
While you stress over your taxes, savings and investments, remember to make an investment portfolio that is well-diversified, that includes high as well as low-risk options. This will substantially help in making smart decisions!
Which category of mutual funds are safe to invest in during this slowdown?
At this point in time, Groww recommends avoiding investments in specific sectors and sticking to well-diversified portfolios, unless one has great knowledge in any particular sector.
Should I continue with my SIPs or redeem the funds?
Research has proven that sticking to SIPs has resulted in the best returns and those who redeem funds during the market slump, have often missed out on the chance of getting a good return on investment. An example of this is the 2008 recession where those who continued their SIPs profited more than those who redeemed their funds when the market was down.
These are just some of the many questions that Groww has covered for you. We are sure your brain must be itching to know more, so download the app now and get first-hand information. Also, you can keep track of performance of your funds and transact with zero-commission payments!