1. Is my job safe?
2. What is my bare monthly expense?
3. Should I invest in Mutual Funds or should I hold?
4. Which asset class should I invest in, if I have to invest?
We will elaborate on each point and look forward to the reader’s opinion on the same.
1. Is my job safe?
Employment rate in India is at an all time low in March to 38.2%. Corporate India was underperforming emerging countries for past 2years before COVID19 struck. While the 85% unorganized sector has unrecorded layoffs, the white and blue collar jobs are facing stressful times. The working middle class had already reconciled to a poor appraisal on the year end, and is now facing job insecurity during these uncertain times. So, definitely time is tough!
2. What is my bare monthly expense?
The average number of members per household in India is 4, making it one of the highest amongst the emerging countries. China and USA are 3 and 2.5 respectively. With only one earning member per household, it is hard to manage the cost of essentials. These humbling times have forced the common man to be cognitive of his bare essential expenses, typically includes consumer staples, EMI’s, school fees, medicines etc.
3. Should I invest or should I hold?
Well, this is the biggest dilemma today. The answer is at first you should have an amount equivalent to your 6 month’s monthly expense in your bank account. If you have surplus after this, you can start investing in lumpsum Mutual FundsSIP in bits and pieces with the help of Financial Advisor.
So that in long run, you can take advantage of the market crash and low NAVs.
4. Which asset class should I invest in, if I have to invest?
Real estate has been in doldrums for last 7 years. Capital markets are volatile due to the uncertain times. Commodities like gold and silver have now started moving up but should one jump in now? There is a constant dilemma in the mind of the retail investor on this topic and current situation has made these questions even more potent.
You may reach out to us on www.globvest.co.in or call at 9999259892 for a personalized advice on your finances management.