The spread of COVID-19 has detrimentally affected the market and we are surely going to witness an economic downturn in the country. In this case, there is a definite possibility of income irregularities, pay cuts or even job loss in some cases. Yet at the same time, there are ways to navigate the current situation that may benefit you. Here’s what you can do to make the down turn work in your favour.

• Think about investing your savings:

An economic slowdown is the perfect time for people to think about investing their savings, to accumulate more wealth. Suppose you don’t want to make lump sum investments, you can think about investing in mutual funds through a Systematic Investment Plan (SIP). Investing through an SIP during downtrends in the market can be critical when it comes to delivering solid returns, as you can acquire more units during the slump period, and benefit from these purchases when the market gains momentum. 

• Make changes to your existing portfolio:

For existing investors, now is the best time to review your portfolio and make appropriate changes. You can use this time to drop equity and other investments that are performing poorly and get a fair exit from funds that don’t align with your long term goals. An important point that you should remember is to not resort to panic buying or selling based on market fluctuations, but rather make calculated and informed decisions. So in that case, it would be a good idea to consult with your financial advisor before executing any changes with respect to your finances.

• Plan for the long term:

When it comes to a downturn, the best thing to do is to make plans with a long term perspective till the time the economy shows signs of improvement. In this regard, one can consider purchasing units in index funds, since they are known to be low risk and hence suitable for both new and seasoned investors. By using these opportunities in tandem with actively managed funds, one can build a strong portfolio oriented towards getting substantial returns in the long term, and achieve your goals.

• Focus on your health and happiness:

With an extension of lockdown across the country and the continuation of the work from home scenario, we all have time on our hands. You can use this towards developing a healthy diet and fitness routine, indulging in your hobbies, spending time with your family and working towards finding inner joy. By working towards improving your physical and mental health, you not only become happier but also save money that may have otherwise been spent on medical expenses.

These are a few ways you can make the economic downturn work for you. Before you make any decisions about your finances, always remember to get an opinion from a professional financial advisor. In today’s world, working with a certified and experienced financial planner or wealth management firm has become affordable, so there are no excuses left to avoid doing so; especially if you are a new or a part time investor.