Want to create COVID-proof portfolio? Here is what experts suggest

After round a year of lockdown, the worry of Coronavirus is nonetheless round and imposition of lockdown is nonetheless hitting the headlines. When it comes to one’s portfolio, worry of job and business loss is nonetheless oscillating within the minds of a standard man. According to tax and funding experts, to counter such monetary disaster emerged post-COVID-19 pandemic, there is want for some modifications in a single’s portfolio. They mentioned that COVID-19 has taught that wants liquidity in a single’s portfolio to maintain round 9 month to one year. They went on to add that one ought to give attention to liquidity as an alternative of progress and put money into debt mutual funds and glued deposits in order that in case there is monetary emergency, one can liquidate one’s money in fast time.

Advising to give attention to liquidity as an alternative of progress Pankaj Mathpal, MD at Optima Money Managers mentioned, “Due to emergence of COVID-19 pandemic, there is an urgent need for liquidity in one’s portfolio. One should avoid fresh investments in long-term that bars liquidation of money at the time of financial emergency. One should invest in liquid assets like NSC (National Saving Certificate, Government of India (GoI) bonds, etc.” Mathpal mentioned that one ought to have liquidity for round 9 month to 12 month to make one’s portfolio a COVID-proof portfolio.

Advising traders to put money into Fixed Deposits and debt mutual funds; SEBI registered tax and funding professional Jitendra Solanki mentioned, “Bank Fixed Deposit (FD) and debt mutual funds are most suitable liquid funds that one can liquidate any time when there is any kind of financial crisis. In fact, one should have 20-25 per cent of the net portfolio in such liquid funds that can help sustain around a year when there is any COVID-19 like financial crisis.”

Solanki mentioned that COVID-19 is a worldwide disaster and its influence on one’s earnings will probably be long-term. So, even when there is long-term funding, one’s tax saving choices shouldn’t be greater than 10 per cent of the online long-term investments.

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