Where to invest your money at this time?

April 25, 2020

5 min read

Top investment options during pandemic. Is this the right time to invest money? How to make money during a pandemic? Good companies to invest money with the best returns. Why should we invest money?

Rohit

Rohit Tandon

Consultant, Gurgaon

BUSINESS CONSULTATION
right investment at right time

 

Why invest?

Well, why does someone start investing in stock markets? The answer is very easy, there are two possible reasons for it. One, because they are looking for financial security. Two, they invest to accomplish their investment goals. With situations like this, where a pandemic is standing at our doorsteps with a very much possible recession along with it, where to invest in a big question. For you and your goals, we’re gonna try and simplify it down.

Should I wait?

The stock market is always full of surprises, ups and downs are an important part of this business. You can never enter the market with full assurance. But we understand this is not any normal situation, risks with the investment are increasing day by day. Although, the stock market survives big crashes every few years followed by dynamic recovery and rally for 3-5 years. In the present environment, it is going to be challenging for the funds to showcase performance, and most of you are looking for clarity on how the coronavirus will be contained before you invest. 

The gist for us is that if we wait for the economic recovery or some good news on the pandemic, we might already be too late. Stock markets recover quite ahead from the actual economic recovery. And every smart investor already knows. So the real question is are You ready for the rollercoaster?

Possible prospering sectors:

The stock market is a market of die-hard optimists. Since the proper nature of the market is unpredictable, you need to have 2 important qualities to survive it. One is faith, faith goes a long way while investing your money and the second is ethics. Yes, you heard me, the stock market has some rules, rules that you should learn by heart. 1. Don’t lose money. 2. Don’t invest your money in crooks. 3. It’s never too late to turn a loss into cash. 4. Don’t forget rule 1. 

Now that you’re completely ready to let's begin our real quest of where we should invest to make the maximum profit in these excruciating times. 

Healthcare and biotech:

Due to the high involvement of healthcare and biotech companies in the fight against coronavirus and hunt for its treatment, there is a renewed buoyancy in their stocks in the market. This whole sector is bouncing back into the game of the stock market. So, the answer to your question begins with healthcare and biotech. Although, our advice would be to stay clear of the small caps or small market capitalization companies as they have the ability to dissolve overnight.  

Teleconferencing:

This is another sector that’s claiming to be a huge investment asset in the times of a lockdown pandemic. Almost every other sector is seeking help from this to keep their business afloat amidst complete lockdown. And with such a growing demand it’s attracting buying interest of many investors. 

Recently, it left the investment groups clobbering when the stocks ran up too far too fast. Evidently enough an American teleconferencing company Teledoc Health, Inc (TDOC) prospered through a pullback with their stock lifting up to 30% since the start of February.

Market Timing:

Market timers nowadays have far more investment opportunities than conventional stock market investors. And due to these vast numbers of options they have witnessed the maximum limit up and limit down sessions. Significantly, the gold trusts all over the world are below the exponential moving average (EMA) after a very long time, this zone of interest could trigger a multi-week bounce. 

Index Funds:

Firstly, what is index funding? These are basically the funds that invest in the companies which are a part of the index of best companies from a particular sector. Despite the bloodbath in the equity market in this time where probably no sector will be left not subjected to its cause but Index Funds could still be the least risky investment of all. We believe it is a good option to play safe with index funding instead of playing rough outside of it. Index funds companies reclaim the fastest in the time of recovery so have patience and invest wisely.

Wrapping up:

The outlook for the economy and the market is unforeseeable, we need to work quick and smart to make the best out of it. What we suggest is for you to buy cheap, buying cheap is the mantra for any successful investment. So that when the market recovers, investors who bought cheaply are benefited the most. And don’t invest lump-sums, go for SIP. Rest we hope you remain safe and if you ever need help we’ll be at your doorstep. Happy Marketing!

 

Reference:

https://economictimes.indiatimes.com/mf/analysis

https://www.businesstoday.in/money/investment/

https://www.investopedia.com/sectors-that-can-prosper-during-the-pandemic-4799819