How To Make The Right Investment Decisions During COVID-19 Crash?

COVID-19 Affects the Stock Market! Investors! Are you scared!

Although the virus brings lot of downfall around the globe increasing the panic among every individual including the investors, especially who invested a lot or thinking of investing in the stocks.

But in all such situation, it is good to stay positive and remember that It’s just a bad time and time passes on!

The COVID-19 pandemic is giving money managers a hard time. Investors – a community that hates uncertainty is now struggling to keep up amidst the market rout and growth scare.

However, this is not the first instance of a massive market crash. In fact, history shows that sooner or later, markets do recover!

So, what should traders do until the market gets back to normal? Well, as they say – “the show must go on”, let’s not make the COVID-19 a deal-breaker.

Here’s how to make the right investment decisions amidst this crisis:

1. Avoid Exiting 

Due to the downfall, a considerable section of the stock market industry has been stressing on exiting now and re-entering later. The loophole of this approach is that nobody is certain of the “right time” of re-entering.

You may lose out on a lot of money by waiting for the right time. Therefore, traders are likely to benefit if they stay invested rather than exiting.

2. Start New SIP

Yes, it’ is a volatile time in the stock market but you can still take investment advantages. Consider starting a new SIP in your existing funds. Alternatively, you can also increase the amount of an existing SIP.

This is ideal for traders who currently do not have lump sum cash in hand. They can increase the amount of their existing SIP for the next 6 to 12 months.

3. Invest More

Yes, you heard it right! 

It may sound strange but now is a good time to add to your investments provided your finances allow the same. 

If you are currently under-invested, utilize this time to maintain your desired investment levels. Investing currently at lower costs shall eventually reduce your overall costs. 

Hence there are great chances of current investments being successful.

4. Stop Waiting 

Do not wait for corrections! It must be noted that as and when more corrections happen, there will be a rise in prices too.

If you keep on waiting, you may miss out on the current lower prices. Once a sharp recovery happens, you may not even get a chance to invest. Therefore, act now!

A Word From Your Philanthropist

The COVID-19 crash is just a phase and shall pass. As we all know, the stock market has witnessed a fair share of ups and downs. 

Crashes and recovery are an invincible part of the market. As an investor, you just need to find your way through it because exiting has never been a solution.

Recovery is sure to happen but may obviously take time. So, keep calm and think again if you have been planning to redeem your investments.

Thinking of investing, open a demat account now.