Investing During A Pandemic

Markets have been extremely volatile lately. The global economy was already facing a tough time when we were struck by the COVID-19 pandemic. This has left many of us wondering if it is the right time to invest. Some of us are tempted to invest in the market when it is low to earn a profit when it bounces back. While others are exiting the market altogether to avoid further losses.

The markets have proven year after year, that while global pandemics have a short-term impact on the market, in the long term, patience always wins. Let’s look at the table below which shows how the markets were affected during each pandemic (which is evident from the market returns during that period) but, over the course of 5 years the markets have recovered and how!

So, how to invest in the current market scenario? The simple answer to that is Systematic Investments. Keep investing little by little. If you were already doing so; don’t stop. Do not give in to panic or greed. Stay the course and you will be alright.

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Moreover, due to revisions in the Dividend Distribution Tax in the recent Budget, ULIP returns would be higher by 20-30 bps than other market-linked investment tools.

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Aastha Mestry - Portfolio Manager          

An Author and a Full-Time Portfolio Manager, Aastha has 6 years of experience working in the Insurance Industry with businesses globally. With a profound interest in traveling, Aastha also loves to blog in her free time.