Everyone should need a powerful strategy to control one’s wealth not only with the aim of secure the capital but also to create desired returns is the need of the hour. The COVID-19 which is also has a tale name called ‘Black Swan’ event has heavily affected the whole world without any expectation. The whole world is experiencing the pandemic reality so, no one was prepared for this pandemic. The pandemic is not only affecting the health of human beings but also the wealth of global economies. The shutdown of economies all across the globe has impacted financial uncertainty. Now the recession is something that looks inevitable and the market fluctuations have left people troubled. People should aware of how to react and what plan they adopt to protect the future of their family.
The investors in India and the whole over the world are being worried because of the COVID-19 pandemic. Market volatility is the main reason for generating negative returns of the financial instruments. Another worry is the uncertainty about how long this pandemic is going to last. This is a serious issue that would affect the health of the investors badly. During this woe time, individual investors should follow how to manage the wealth effectively not only during the COVID-19 crisis but beyond. There are some Tips:
Analysis and defining of your investment profile
Wealth creation is a very difficult task under the current pandemic scenario. The sudden outbreak of COVID-19 has destroyed the investments of many investors. In such a situation the first step that needs to be taken to manage your wealth is to evaluate or analyze, redefine and reassess your risk appetite, change the style you adopt for making investments and reduce the level of comfort. Another technique is to invest your wealth for a long period. This ensures the COVID-19 or any other crisis does not impact your portfolio.
Buy dips and staggered investments
The current equity markets are facing high volatility. The high volatility can result in equity investments creating negative returns. In such scenarios, the better option is to buy dips and staggered investments for more than 6 months. This will help the investors to build equity exposure in the portfolio of the investors for an investment horizon of more than 3 years.
Gold also plays a vital role to manage the wealth. The specialty of gold is it’s been a safe investment asset with no counter-party risk and is expected to retain its value even in times of recession. Gold is an asset class that is expected to perform well in light of low global economic activity and a low rate of interest across the world.
Considering international investments
The intention to invest in international investment avenues is a good idea that helps in diversifying country risk, credit risk, and currency risk. It also creates opportunities to invest in many sectors of companies like technology, healthcare, and other sectors that are not available for investments in India.