Some Financial Tips for Second Wave of Corona Virus

GUWAHATI: There is an old wise saying that ''don't put all your eggs in one basket." Never has this been as true as it is today. This, as investment advice, was always true and in a situation where everything is adverse, this becomes the most prudent investment strategy. 

So what this primarily means is that this is the time to have a very diversified portfolio. This phase of uncertainty demands that we reduce the aggression in investment and try and move towards a low-risk medium return investment strategy so that your capital at least is not eroded. Maintaining an unhinged capital must be our primary objective of surviving through the pandemic. Even low returns are considerable for the time being, for example, the equity market investors have seen a very low to almost no yield during the first wave of COVID 19, and people who have regularly invested in the equity market have therefore seen the depletion of their capital. So, a more diversified investment portfolio would be a wise strategy. Read more

Another important avenue for investment is International stocks and trade. Since India is already a hotspot for the second wave of COVID 19 and if the steep hike of cases goes uncontrolled for a long time, markets will again suffer as a result of which Indian stocks and trade will therefore take a downturn. To compensate for that, investment in international stocks and trade will ensure that your capital is not eroded. 

It is extremely crucial to have cash reserves in hand now because anything is possible in these times of uncertainty. For people who are working salaried jobs, there could be no salary or layoffs, or no sale of stocks, leading to no income in the coming six to eight months, therefore reserves to last for the next six to eight months is absolutely necessary. Every bit of money should therefore not be invested but kept with easy access to liquidity. Easy excess to liquid cash is of utmost importance for emergency situations like going to the hospital and traveling.Read more

Investing in gold, depending on the packet of investment from individual to individual depending on their personal capacity is also desirable at this point because the value of gold is definitely not going to deplete in this period. 

The above tips on how to go about your finance in the second wave of COVID 19 could be seen as the prudent investment strategy in this period of the pandemic which goes back to reinforcing the fact that "don't put all your eggs in one basket."

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