Sanitising Your Portfolio

A sanitised financial portfolio is the first thing you must aim for to tackle the pandemic. Here are some things you can do

- Abeer Ray

Volatility is often considered the hallmark of equity investment. The stock market has had its share of yo-yos in the past as well, but the current phase seems to be prolonged like never before. A large number of stocks are expected to decline in value once the correction occurs. The economic downturn mirrors the fear and recession concerns due to business slowdowns (or shutdowns in many cases) and loss of jobs amidst the second wave of Covid-19. So much so that even regular investors with a penchant for equity and equity oriented securities and high-risk mutual fund portfolios are now changing their focus as well — from capital appreciation to capital protection.

Managing Finances

Experts say the resulting panic should not influence one’s financial decisions. Instead, they advise portfolio reshuffling and diversification to meet future needs and goals. The pandemic has been a lesson in disguise for those who never counted investments beyond low-valued fixed income schemes. Buying life, health and term insurance policies has gained precedence over other financial plans and is imperative to minimise the impact of the current shock on investments and ensuring a financially secure future for our loved ones. The need of the hour, therefore, is to build a sanitised portfolio with the right asset allocation and choice of investment options.

Focus On Health Insurance