Here are 5 lessons Corona gave …
Portfolio balance is important : Here are 5 lessons Corona gave
1) Portfolio balance is important
According to experts, investing in the stock market should be started through SIPs. Asset allocation should be given importance. Along with equity, debt, real estate, gold should be included in your portfolio through investments. Emphasize portfolio balance. For example, our previous portfolio allocation was 70 per cent equity and 30 per cent debt. Due to the current downturn, it has become 50 per cent equity and 50 per cent debt. With a view to the next ten years, invest in risk-adjusted schemes and bring the portfolio back to 70 per cent equity and 30 per cent debt, experts say.
2) Don’t borrow more than you can afford.
If you have a lot of debt, it is a mental stress. The mental burden is not lightened unless the debt is repaid. If you have the ability, there is no better option than a loan to fulfill various dreams like house, car, bike. But if you don’t have the ability, debt can be a big crisis for you. Many people have a habit of spending on credit cards and the credit card bill is paid after the salary is paid. But the present is a lesson. Many companies are firing employees without notice. As a result, those who have debts are increasingly worried. That’s why it’s important to plan to spend as much as you can afford.
3) Monthly savings
If you have money to deal with any emergency, you don’t have much trouble. Especially in a situation like Corona, if you have enough savings, you can stay at home and meet your own needs for a few days. This savings is a lifeline for you when you suddenly lose your regular income. You need at least six months to save. This is especially important for employees.
4) Diversification in investment.
The corona virus has had both positive and negative effects on stock markets, securities, banks, posts, metals, real estate and other investment options. Of course, those who have divided their investments may be concerned. But, splitting the investment is the right option and has been talked about many times. Because, while the return on an investment option may seem like an immediate benefit, it is also important to look at how much it is used. But, it cannot be said that investing in any form is the best investment. Because, every investment has some limitations, you have to understand that. So divide the investment. Because this will help you balance your investment.
5) Health insurance (last but not the least) – your friend in difficult times
Personally, the best way to reduce the impact of health-related problems is to purchase a health insurance policy. Health issues can affect a person in different ways. In addition to being physically and mentally exhausted, the cost of medical treatment, hospitalization, and medication can have a profound effect on a person and his family financially. A health insurance policy can protect you from all of this. But since the company provides health insurance, most employees avoid taking out separate insurance or raising the limit of this insurance. Due to this situation, the importance of insurance is now understood.
