The pandemic has brought along uncertainties and hence meeting short term goals and having liquid funds at disposal has become the priority. Unnecessary expenses need to be moved to the backburner and spending needs to be focussed on creation of assets which can help in times of distress. Purchasing/upgrading your health and life insurance plan is an absolute imperative!

Smart investing in crisis can prove to be rewarding. The need is to focus on a financial plan that works for you and not to worry about the ‘best’ plan out there. Consult a financial advisor in order to help you design the right-fit plan for you and your family.

Taking hands-off approach!

There is enough evidence to support the theory that in the long run, customers who remained absolutely hands-off made the best returns. This methodology helped individuals to remain invested for a very long time and create considerable wealth through the power of compounding.

While a completely off-guard approach is not advocated, in uncertain times, you can avoid the ‘wrong’ decisions by killing the noise. Stay updated about the markets but do not succumb to speculative opportunities in uncertain times. You are more likely do better this way.

Invest Systematically

If you invest systematically through Systematic Investment Plans (SIPs), then volatility are likely to affect your returns lesser. SIPs enable to take advantage of asset price volatility through Rupee Cost Averaging. This makes SIPs one of the most preferred investment options.

Invest in Small Finance Banks Fixed Deposits

Most small finance banks (these are scheduled commercial banks, so in the same league) offer 8-9% p.a. interest on Fixed Deposits for tenures of one to three years as compared to an average of 6-6.5% p.a. offered by large public and private sector banks. The returns for senior citizens in FDs with small finance banks are even better (typically, 50 basis points higher) as compared to other available schemes. In Budget 2020, the finance minister also increased the insurance cover on bank deposits to Rs. 5 Lakh. Good returns with a higher cover makes FDs of small finance banks a compelling investment option. 

Focus on Asset Allocation to reduce the risk!

Asset allocation implies diversifying your investment over different asset classes with different level of risks associated with it. Some assets like debt funds have lower risk profiles, while others like equity funds fall under higher risk categories. Debt funds will be far less impacted by a market downturn than equity funds. Low risk debt funds can continue to generate positive returns when equity funds are making losses. Portfolio stability will enable you to remain invested and in the long term, when the market recovers and makes fresh highs, equity funds will create wealth for you.

Stay informed!

It is important to stay informed about the various economic and regulatory reforms in order to analyze and create a balanced portfolio. Regulators continue to refine existing regulations in the wake of the changes in the environment. Regulatory trends tend to have a significant impact on banking and finance. It is imperative to stay informed of evolving trends in banking, capital markets, insurance and investment landscape to stay on the top of the curve.


The market is always expensive, market volatility has always been here, covid is not new anymore and political uncertainty is nothing new. In every crisis, there is an opportunity. In every phase of the economic cycle, there is room for making reasonable return on investment. A portion of your portfolio may be set aside to meet regular income needs over a five- to 10-year period. Choose as you may – remember to make a Plan and Stay the course!

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