New Delhi -°C
Today in New Delhi, India

May 28, 2020-Thursday
-°C

Humidity
-

Wind
-

Select city

Metro cities - Delhi, Mumbai, Chennai, Kolkata

Other cities - Noida, Gurgaon, Bengaluru, Hyderabad, Bhopal , Chandigarh , Dehradun, Indore, Jaipur, Lucknow, Patna, Ranchi

ADVERTISEMENT
Home / Brand Stories / Time for an investment review

Time for an investment review

If your risk profile allows, it may be a good time to shift some investments to equity, and mutual funds are a great option to do that.

brand-stories Updated: May 20, 2020 18:50 IST
Brand Post
Brand Post
It’s time to review your lifestyle, cost of living, and get disciplined about your expenses.
It’s time to review your lifestyle, cost of living, and get disciplined about your expenses.(Axis Mutual Fund)

As the economy gradually springs back into action, it’s time you took stock of your financial investments. Investor sentiments are getting better because of the revival measures by the RBI, stringent action by the government, and also because several countries are already in the process of developing vaccines and drugs to combat the deadly disease.

While the Sensex has steadied itself and stock prices look attractive, it is still not the time to go for risky investment alternatives. Review your investments and realign your strategy with the change in the financial market scenario.

Rationalise your cost of living

It’s time to review your lifestyle, cost of living, and get disciplined about your expenses. Make a list of essential expenses, lifestyle expenses, and luxury spends, and start cutting down on the ones you can. This could include eating out at fancy restaurant every weekend, paying exorbitant gym fees, splurging on branded clothes, gadgets, etc. Make every effort to save more. A penny saved is a penny earned. Take baby steps towards saving.

Maintain liquidity

Liquidity is most important in these critical times and one has to maintain enough liquidity to take care of living expenses for at least five to six months. But that does not mean you convert all your investments into cash. You need to shift your investment strategy to a less risky and highly liquid one. Liquid mutual funds are a great option, as they offer safety, liquidity, and decent returns compared to a savings bank account.

Insure life and health

Ensure your family’s financial security by buying essential insurance covers. A term cover can help you get sufficient protection for a nominal cost and secure your family for a long time. A mediclaim policy is another basic need. Please ensure an adequate cover for your entire family to meet medical emergencies.

Invest in equity through mutual funds

If your risk profile allows, it may be a good time to shift some investments to equity, and mutual funds are a great option to do that. They are less risky as compared to stocks. Investors can benefit from the expertise of fund managers to get good returns with lower risks. Investors can invest in mutual funds based on their risk aptitude and investment goals with the help of an advisor.

Go for SIPs

This is the best time to continue investing in mutual funds via SIPs. Investors don’t need to worry about timing the market and can start with an amount that suits their budget and investment objectives. SIPs also help initiate an efficient investment approach and instill investment habits even in a small investor. SIP is a good long-term investment strategy, where you can start small and stay invested for 7 to 10 years.

An investment review in periodic intervals is a responsible exercise and especially critical in such testing times. So, do not panic. Use the advice of professionals to manage your finances. Invest prudently and stay invested.

ht epaper

Sign In to continue reading