Expert Advice: Where to invest amid the Corona crisis

203


Corona has made it extremely challenging to achieve its financial goals amid salary cuts in the crisis. On the one hand, the challenge is to meet the necessary expenses in low income and on the other hand to continue without stopping the investment in the middle. Till now, investors are advised to hold 60% equity and 40% debt in the portfolio. However, the traditional rules for investment portfolios in the Corona Crisis are no longer beneficial. Also, it is not effective for young investors.


What is special in the new strategy


Financial experts are now recommending investing in a 50:50 strategy. This means that 50 percent of the savings should be invested in stocks and the remaining 50 percent in debt options. He says that this keeps the balance in the portfolio. Experts say that if there is a sharp rise in the stock market in the case of a 60:50 strategy, then the investors surely have a strong profit, but in the event of a fall, there is also a big loss. While a balance remains in the 50:50 strategy.

What do young investors do?

A 60:50 or 50:50 strategy is not very effective for younger investors. Experts say that young investors can build portfolios according to their needs and risk-taking ability. He says that young investors can invest 80 percent in stocks, which can make big money in the long term. However, if one needs capital in two to three years, most of the investment should be invested in the debit option.

Share this article