Hello Readers! 

We have reached the end of the year 2020, many of us might have started planning for how they are going to spend their year, what goals they are going to achieve. And the most important thing they might be planning, how they are going to get their finances back on track!

The year 2020 was similar to a bad dream that people were leaving. Many things went wrong, people’s many of the plans be it vacation plans or starting an investment plan was all ruined. There are many people whose best-laid plans for the next few years have also been affected due to this pandemic that was the biggest trending news this year, yet it is. Many of us were pushed out of our comfort zone only to realize that we are able to generate positive financial outcomes without support from others.

While there are many who lost their job and regular income, finding out that capital preservation is the only way to survive. This year made us realize the power of knowledge, skill, talent and on the same side, it made us understand that your saved money is the only way to survive in bad times.

We are at an end of this tragic year, now question is, after all the tragedies that we faced in 2020, how can we plan for the next? What will be the strategies followed?

Your Investments Need Quick Analysis

If You are one among those who have lost their job or your income has been dramatically altered in this year, then dear it's time you need to alter your financial goals too, be it long-term or short-term. There are chances, things that change professionally will not go back to where they were even after the pandemic ends.

So before you enter the next year, rework your financial situation and find out the two main things, calculate whether you will be able to achieve your long-term goals with lower income and secondly, you have to seriously consider a lifestyle change if your income will take time to move back up to the earlier level.

Capital Preservation

Despite the panic that the equity investors suffered at the start of the pandemic, currently time for them to celebrate as the domestic equity market indices continue to scale lifetime highs. The Nifty 50 index is up 70% from the lows seen in March 2020.

So basically, if you are receiving unexpected gains this year and at the same time you are struggling with your regular income due to some reasons, I suggest rethinking your asset allocation strategy regarding the incremental investments. Through a small alteration in your asset allocation, you can approach your financial state. Some of your capital gains can be invested in stable return investment options.

However, if your regular income is going smooth in spite of this pandemic, I suggest do make sure that you continue your monthly investments towards long-term wealth creation.

Reviewing and rebalancing portfolio allocations, on intervals is a normal routine of the overall financial journey, however this year, this normal routine needs to be a lot more extensive. A whole year, your portfolio might have seen big and small changes due to an uncertainly long pandemic. So basically this year your portfolio reviewing strategy will also be based on the financial changes in your life due to this pandemic.

For any kind of query you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee of future returns).