Hello Readers!

People all around the world are suffering from the Corona outbreak that has not only put a brake on people’s life but also has gripped the global financial market, whether it is a developed economy or a developing economy.

Indian market is also facing the economic slowdown, almost every investor, whether of the stock market or mutual funds or other investment instruments, are worried, what will happen to their investment? Here every individual has only one big question and that is will the market collapse? And this can’t be answered even by excellent investors too.

During this situation what we can do best is, we can take proper precautions and measures to protect ourselves from getting infected by the COVID-19 virus, and for this, it is a must for us to maintain our personal hygiene and build up strong immunity. Good personal hygiene will restrict the virus to enter our body and a strong immunity will help to fight with the virus. Similarly, as the investment value is declining, taking right steps and precautions to protect your finances, is the most important practice that you need to take currently. This can be done by maintaining good financial hygiene and building a strong portfolio immunity. In fact, these measures should become a natural part of your financial planning process.

Financial Hygiene 

The very first habit that you need to inculcate in yourself towards maintaining financial hygiene, is the habit of saving. Its very simple to learn the habit of saving, just follow one line, do not spend everything that you earn. Initially, it may be difficult for you to inculcate this habit of saving, so it will be good if you start saving small, then you can keep adding to this.

Saving is important because, you are not going to work and earn for your life, the day will come when you will retire, and your money saved today will carry your expense of the days when you will not work.

Now as you have started to save money, it is better don’t keep your saved money idle, rather put it into an instrument where your money will work, multiply itself, and help you build a good corpus over time.

Another most important thing that should be the part of your financial hygiene is, avoiding any kind of debt, restrict yourself from taking any kind of loan, this will help you have a better standard of living and quality of life.

To maintain good financial hygiene, when you plan your expenses, base it on your needs and not on your wants, base it on your choices and not on other choices.

Financial Immunity

A strong financial immunity, well this takes a long time to build up and the best way to do it is to start investing early as that will help you create a financial cushion early in life.

When you accumulate a good wealth by early investing, you are now able to take strong decisions towards your expenses, jobs and investment choices. As you have accumulated good wealth, and have strong financial immunity, now you are eligible for taking calculated risk towards your investment. Building a strong financial immunity earlier in your life, helps you handle and carry the big financial responsibilities, in the days when you get older.

The most important thing that you must understand, in order to build strong financial immunity, you need to understand the relationship between risk and return. If you will to create a good wealth, you must take a risk in your investment, avoiding risk is not an option when you aim to create a good corpus, rather learn to manage the risk. This can be done with the help of suitable asset allocation and diversification to protect the downside or probability of loss in your portfolio. By starting early and having a balanced portfolio of investments you can build much-needed financial immunity in your life.

It is important to maintain your financial hygiene and financial immunity, at every stage of your life, as it helps you protect your self during the market outbreaks, good financial hygiene and strong financial immunity give you a cushion to ride through the bad times.

You can contact us at Shri Ashutosh Securities Pvt Ltd., for any assistance, 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 to future returns).