Lockdown could be a long-term wealth creation opportunity!

Posted On Thursday, Mar 26, 2020


Firstly we all know that due to Covid19 pandemic we have been advised to stay at home, lock ourselves indoors and not venture out only if necessary. This is easier said than done, a human being is a social animal and finds it difficult to isolate, thus it is normal to feel anxious or overwhelmed during the phase of quarantine. However social distancing is a mandatory step we urge to you take in order to prevent spread of the deadly coronavirus.

The quarantine, as optimists will tell you gives you two opportunities, one to reconnect with family and two to reorient oneself with investments and sort out family finances.

Spending quality time with your family is the best way to spend the given 21 days indoors, this is the time to reconnect with your loved ones. Do activities together like go back to playing indoor games, cooking, watching classic movies together or just have some conversations over coffee. There’s nothing more comforting than being around people who truly care for you. Pick up a hobby that you have been longing to do like singing or dancing while staying at home. Interestingly it also apparently takes 21 days to form a new habit; so go ahead and choose an activity.

Besides the lockdown, coronavirus has also been impacting markets world over. Volatile market conditions have many of us wondering that what we should do next. The most essential factor here is to remain calm. Instead of any panic move, investors should make the most of this phase by investing for long-term. The Indian markets are currently seeing a good correction. Stocks are available at attractive valuations. Investors who come in to the markets now have the potential to get good long term returns. Re-look at your finances, see if you have that little extra to invest in equities, and take the plunge.

Lockdown is long-term wealth creation opportunity!!!

How you ask? Simple, work from home environment has made us confined to our homes but also on the other hand it defines a better work life balance. Families are now spending most of the time at home, even during weekends. Normally most of us would go out for shopping, watching movies and spending some time & money on dining out at fancy restaurants, however with nowhere to go and almost all online shops shutting their services of non-essentials people are saving up! We urge you to deploy this additional money and invest for your future. This is indeed the right time to invest in mutual funds. For existing investors it is best to stay invested and strategize long term goals whereas potential investors should definitely invest now because the market valuations look attractive at the moment. Buy when the price is low! Don’t let coronavirus because a hindrance to achieve your dreams, rather use it as a springboard to save more and invest more.

We would like to conclude by sharing some insights by Mr. Atul Kumar, Head – Equities, Quantum AMC. He says “There has been a fair correction in valuations. We have seen historically that investors have made good returns after 1-2 years from such bear markets. One should invest in good quality stocks which have decent financials strength, are run by capable management and the industry they operate in is not shrinking.” He further advises “existing investors investing via SIPs should not discontinue their SIPs. It gives the benefit of averaging on the downside. If one is underinvested as compared to optimal allocation, now is a good time to double up. Discipline is important in investment. Stay safe and invested.”

Disclaimer, Statutory Details & Risk Factors:

The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.

Mutual fund investments are subject to market risks read all scheme related documents carefully.

Please visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme(s) may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.

Above article is authored by Quantum.

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