May 21st, 2021
Covid-19 has affected the livelihood of people. In terms of economic activity, this pandemic has proved to be catastrophic.
Livelihoods are suffering from all sorts of downturns including economic ones. Due to a continuous decrease in Interest rates, people investing in fixed deposits are losing their purchase power by leaps and bounds.
The highly contagious virus continues to create devastation even amidst 2021. As a result, there is a need to alter the investment procedure and try out new horizons that can enhance the cash inflow and also alleviate the effect of a salary cut.
The usual approach of investing in fixed return is not an intelligent investment option anymore. With tremendously rising inflation, the return rates are indeed negative. While on the other side the Indian economy has also flattened with the second wave of covid-19.
In this scenario, Investors that have fixed income must look forward to investing in the basket of portfolios for minimising Risk and yielding better Returns.
Steps to be Taken to Earn Better Returns-
The utmost thing is to ditch the old school methods of investment and try to look up the New Horizons. Our focus to select investment should be in-
● Tax efficient products
You must specifically choose to invest money on instruments so that it gives you a tax rebate. Property being one of the most suitable options for this, it would not only help you to get high returns but also substantial tax concessions.
● Long term equity
Investors are considering channelling the liquid asset in long term equity management. This is one of the eminent options nowadays because of good return options.
The midcap and smallcap sector are choosing long term equity for safeguarding their Investments.
● Government bonds
With a minimum return rate of 6.03 %, Government Bonds can also be chosen as the next best option for investment after the covid-19 pandemic hit.
If you happen to hold these bonds for a decade, the yield percentage can be somewhat better. A government bond is the safest form of investment with a guaranteed payment of interest.
● Blue chip stocks
Blue-chip stocks have a comparatively lower risk rate and tend to beat inflation in the long run. These stocks are better than equity and that's the reason why leading investors and financial experts prefer them.
These stocks have a long history of existence and are known to pay consistent dividends.
These stocks have a long history of existence and are known to pay consistent dividends.
● Differentiated sectors
Once things get normal and the market returns to regular working, investors can conduct a small research and choose sectors like FMCG, Healthcare and Finance to embrace better opportunities and broaden their options.
One can also consider investing in Mutual Funds that are known to bring in returns when invested for the long term. As a lesser-known fact, mutual funds help you to get up to 15% ROI.
One can also consider investing in Mutual Funds that are known to bring in returns when invested for the long term. As a lesser-known fact, mutual funds help you to get up to 15% ROI.
● Which is the best option to invest among all?
The inflation rate plays a vital point when one is thinking to invest. Thus before investing it would be good if you analyse and get to know more about the inflation rates.
To overcome the inflation issue, the best option is to invest in the one that delivers high ROI. One's priority should be to choose safe returns over the ones that claim to give higher returns even if they are low-paying.
Hopefully, this article has helped you to analyse an approach to invest in post covid. If you have any other queries, feel free to reach us.