The year 2020 was harsh for everyone and 2021 also seems to be like the same but the difference is, it’s harsher than the previous one. Major cities and states are suffering from strict lockdown and economic activities came at a halt once again with few flexibilities in rules. All this is to break the deadly chain of Covid 19 strain. Everything looks terrible, negativity is everywhere, but on the bright side, many of us are lucky to be safe at home and have a steady income and also a lot of free time in a day.
If you are the one, then you must be wondering that how you should put your savings to a better purpose than just spending it on random purchases. Given that it is a hard time, you should put some of your savings into emergency. While some savings may help us to get through this pandemic, it is investing that would help you to survive any future uncertainties that may come your way.
But the question may arise that is it the right time to invest, as the market is down. The first thing that matters is how much residual amount you have in hand. If you have low cash, then it is not advisable to invest right now as it can be used for some emergency purposes. But if you have enough cash after savings for an emergency then it is the best time to invest in the market.
While the market is down may sound like bad news, but a dip in the market means a fall in prices. And investing in the market when prices are low have good chances of profitability in future. Also, due to lockdown, you have a lot of free time at home. You can take this as an advantage to do thorough research in an asset class where you can invest. You can also learn the functions of investment markets. Better research and learnings can equip you with the knowledge of the market that would be helpful while making investment decisions.
You can invest in financial instruments like shares, bonds, derivatives, options etc., all have a different level of risks involved, or you can also invest in alternative investment instruments like private equities, real estates and commodities, or you can choose the combinations of both to hedge the risks by diversifying your portfolio.
While looking for investments during this uncertain period, making a unique and efficient investment strategy is vital. Deciding when to buy or sell, when to hold and assessing your risk-taking ability are some of the crucial points on which you should be clear while investing.
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