Where to invest during Covid?


The time is difficult for us all. Hence, investing money in the right places is what we need to do to safeguard ourselves from further damage.

With interest rates down, now FD is no longer 'the' option for future investment. So, here are few things which we may do with our money if we are lucky enough to have a job till now (during this Covid time, so many people lost their jobs!):

1. If you are a risk-averse person like me, try out the traditional investments like -

a.  VPF (Voluntary Provident Fund) - Where you may contribute up to 100% of your basic and DA, with a lock-in period of 5 years and interest rate is same as EPF.

b. PPF (Public Provident Fund) - Among the conventional methods, this one has the highest interest rate after PF, however, it is for the long term - 15 years!!!!!

c. NPS (National Pension Scheme) - Here you may select the investment percentage more in bond to safeguard your money. However the flip side is you have to buy an annuity on maturity, you won't get lumpsum money.

d. Sovereign Gold Bond - This one, again, is for the long term - 8years! You may buy as low as 1gm gold during the fixed time in a year. It is a substitute for physical gold.


2. Let's look at the high return more risky options.

a. Stocks / Equity - The best one for all time scenario. Turnout depends on how wisely you are choosing the shares. The booming sectors in this Covid time are - FMCG, eCommerce, pharmaceuticals, insurance. (My favorite and Covid time hit stock - Reliance, for sure.) It is always advisable to diversify your portfolio, hence, you may think of buying shares of some companies that are badly affected now but will soon recover post covid - airlines, travel companies.

b. Mutual funds - If you do not have enough knowledge to buy shares on your own, investing in a mutual fund is the next best thing. Usually, they have a lock-in period of 3 years. If you want to take less risk then you may consider the bond funds instead of the equity ones. Flip side of investing in bonds is the return is comparatively lesser.

When it comes to investing, the first word that pops up in our mind is "Real estate". With loan interest rates lower and more work-from-home options, is it a good time to buy a home?

For that please wait for my next blog.



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