With India seeing a massive surge in Covid cases, the emerging online stock market is struggling to make headway. According to the country’s top-performing fund manager, the Corona impact on the stock market, and by extension its impact upon the economy is being underestimated. The Covid19 impact on the stock market is deadly, as it may cause a “correction” in stocks.
How to Analyse Stock Market Trends
Stock market trends refer to the general direction in which a stock is going. Using stock market trends, one would be able to predict whether a specific market sector is on the verge of growth, or not. Based on the data such as the market sector, one can choose to invest in mutual funds online. However, external forces such as the pandemic have a deep-rooted impact on market trends, such as the situation, presently. One cannot analyse the stock market trends without keeping in mind the pandemic, as it is a driving or depreciating force for the investment stock market and investment stocks.
Steps to Keep in Mind While Purchasing Mutual Funds Online During the Pandemic
1. Be vary of your Systematic Investment Plans (SIPs)
Sticking to one’s systematic investment plan during the Covid19 crisis can be of great help. Avoid taking big or hasty decisions, owing to the fact that the pandemic time is uncertain.
2. Efficient Management of Cash
Deploying cash successfully over 2-3 months by adding it to an asset that is managed by a proven fund manager can prove invaluable during the pandemic.
3. Have a Balanced Portfolio
One can begin with saving up money for short term goals, such as saving up for higher education. Next, invest in expenses that are foreseeable for the next 4-5 years, wherein you can utilise your ELSS, post which one can invest for long term goals.
Purchase Mutual Funds Online
Motilal Oswal introduces passive Motilal Oswal Asset Allocation Passive Fund of Funds which is aggressive and conservative, a reliable way to invest online in mutual funds. The attributes of this fund include the fact that it is diversified, at low cost, that aims at risk reduction. The portfolios are created according to the risk appetite of the investors which include conservative FoF and aggressive FoF. One of the benefits include the fact that it is tax efficient, in that the mutual funds investment do not incur income tax liability during portfolio rebalancing.