With the second wave of the pandemic bringing about a feeling of uncertainty once again, many have chosen to take a step back from investing. If you’re in this category of individuals, here are some investment opportunities that you could consider once the second wave subsides.
1. Mutual Funds
After the sudden crash of 2020, the Indian stock market has managed to stage a complete recovery. As a matter of fact, it is now performing far better than it has ever done before in its history. With the markets likely poised to make further gains, you could consider investing in them for the future.
And what better way to invest in the stock market than through mutual funds? Putting your hard-earned money in a mutual fund is an investment strategy that gives you the ability to create wealth over the long-term, Plus, it also brings down the overall risk through inherent diversification.
If you’re looking for other investment opportunities that also allow you to take part in the wealth creation process through the stock markets, then this one’s for you. The number of companies coming out with IPOs has seen a massive increase over the past one year. And many of them have gone on to become multibaggers as well.
One of the primary advantages of investing in IPOs is that you not only stand to benefit from listing gains, but also get the opportunity to take part in the wealth creation process quite early on.
A comprehensive investment strategy is one that lowers the investment risk and increases the chances of earning returns. This also includes beating inflation. And a great way to do that would be to hedge your inflation risk by investing in alternative investment options. For example, you could invest in commodities, such as gold or silver, which have historically been good inflation hedges. You can use an inflation calculator to see how much your investment in commodities will be worth in real terms in the future. This will help you determine whether this is a good way to hedge your inflation risk.
Currently, gold is one of the best alternative investment options in this category. This yellow metal is quite popular as a safe-haven investment during periods of volatility. With regard to gold as an investment, there’s a whole gamut of choices. For instance, you could choose to hold it in its physical form, as digital gold, or as gold ETFs.
And there you have it. These are just a few of the investment opportunities that you can look at after the COVID-19 second wave passes. Make sure that you create an investment budget before you invest in the assets of your choice.