There is major impact of pandemic of COVID-19 – Coronavirus on Share Market. Currently, all investors encounter with some significant questions in light of current economic conditions.
This is a true testing time for all investors.
The Sensex dropped by 35% approx in past 30 odd days and as informed investors, we know that large and small businesses got affected. Economy has slowed down and with this pandemic, business across industries irrespective of their size are seeing some impact and will continue to do so for some time to come.
Once things settle down, which we hope happens sooner than later, we are confident that the Government will come out with some measures for the industry and people with some kind of a stimulus; the recovery will happen, IT IS ONLY A MATTER OF TIME & THIS TOO SHALL PAAS.
3 most important frequently asked questions (FAQs) from our as well other investors, thus answered:
Q1. Can we predict what is going to happen and will it be permanent in nature?
Answer: No one can predict how long it is going to take for the virus to get under control and life to get back to normal. But historically we have always seen after a calamity, war or incidents with such global impact, people and economies have bounced back. No country and no community remained stagnant and it is in human nature to overcome difficulties, innovate and progress.
Q2. Should there be change in investment pattern?
Answer: Most of our investments in the markets whether done in direct stocks or through mutual funds are long term in nature. All our investments are with a certain goal in mind. Again our reasonable self says that with such credible companies trading at such low valuations, it is a good time to invest some more in equities. We will definitely not stop SIPs as we know they will be buying units at very low prices which will boost returns when markets turn northwards.
Q3. Should we worry about the safety of our investments / corpus and shift to FDs?
Answer: We have our asset allocation in Debt funds, Liquid Funds, Cash, Direct Stocks, Equity Funds, PF, PPF etc. We have our contingency funds available in accounts. Then why should we be driven by fear and not see this as an opportunity? Our point is let us be dispassionate, as hard as it sounds, and be driven by IQ rather than EQ. The text book “basics of investing” is to have a financial goal and an asset allocation as per risk appetite. And this is the time to stick to the basics and have asset allocation in place.
Most of investors are in a state of confusion and tension. But, there is nothing to panic about in long term. The cycle will surely move to positive phase at its pace.
Also see our previous post – An important video message to Never Waste a Crisis – Click to Watch the Video
To know about our investment advisory services and to place your enquiries: Drop us a mail at – firstname.lastname@example.org or Visit pawealthadvisors.com
Disclaimer: The report only represents personal opinions and views of the author. No part of the report should be considered as recommendation for buying/selling any stock. The report & references mentioned are only for the information of the readers about the industry/company stated.