KredX Blog KredX Blog
  • HOME
  • PRODUCTS
    logo

    FOR BUSINESS logo

    logo

    FOR INVESTORS logo

    Invoice Discounting

    Unlock money tied up in unpaid invoices

    KNOW MORE

    KredX Pay Later

    A closed loop financing for your dealers/distributors/Retailers

    KNOW MORE

    KredX Cash Management Solutions (CMS)

    Get real-time analytics. Manage disputes. Minimise risks. Get risk-free returns

    KNOW MORE

    KredX Global Trade

    Get Quick Finance To Fund Your Import-Export Requirements

    KNOW MORE

    Invoice Discounting

    Diversify your portfolio with alternative short-term investments

    KNOW MORE
  • PARTNER WITH US

    Business Partner Program

    Accelerate your client’s business growth and get attractive payouts on time

    KNOW MORE

    Financial Advisor Program

    Grow your credibility and clients’ investment portfolio

    KNOW MORE
  • KNOWLEDGE CENTER

    FAQs

    Blog

    Knowledge Base

    Webinars

    Reports

    WhitePapers

    Podcasts

  • COMPANY
  • LOGIN / SIGNUP
  1. Home
  2. Business
  3. Investment During The Current Recession
 Investment During The Current Recession
Business COVID19 Intern’s Corner Investor

Investment During The Current Recession

by KredX Editorial Team May 9, 2020 0 Comment

The interns of the “Do More With Your Time” – A KredX Internship Initiative, has been brightening up our days with their insightful blogs & articles. Here’s a blog by our 16-year-old intern Palak Sureka about investment during the recession.

The current coronavirus pandemic has shaken the world and resulted in a profound impact on all aspects of our lives- especially financial. The IMF (International Monetary Fund) has declared that “the global economy has entered recession as bad or worse than in 2009.” IMF estimate for the overall financial needs of emerging markets is $2.5 trillion. This situation calls for a different approach to investment to reap maximum benefits.

Both Indian benchmark indices, i.e. BSE Sensex and NSE nifty, have officially entered the bear market showcasing investors’ fear of economic fallout in such times. The topmost priority now becomes to ensure maximum security besides exploring investment opportunities. 

Why Not Cash?

While most people have started sitting on cash, it might not be the best idea to do so as the currency value of rupee will depreciate (unlike US Dollar and Yen) as our country will continue to print currency notes thereby increasing money supply leading to an excess of aggregate demand over aggregate supply, also known as inflationary conditions in the economy. The rupee has already weakened as much as 0.8% to 74.34 per dollar.

The Golden Opportunity

On the bright side, the World Gold Council (WGC) stated that gold provides more liquidity with no credit risks and improves overall portfolio performance. “Today, gold is more relevant than ever before for Indian investors. In such times of uncertainties and global market turmoil, gold possesses the ability to significantly improve risk-adjusted returns of portfolios across various levels of risk and act as a hedge against inflation and our data confirms this,” WGC Managing Director, India, Somasundaram PR said. Investing in gold coins may be a good idea right now as gold does not result in a panic reaction to market movements. It must be noted that the stock market is yet to hit its bottom and it is not wise to risk limited funds in by investing during a time of economic recession if one does not have enough future security to provide for recurring expenses especially since sources of income are now limited.

Keep Looking

However, investors with surplus funds can continue looking for investment opportunities as selected sectors such as biotech, pharmaceutical companies, teleconferencing companies are continuing to do well or even better due to the rise in demand.  

Be Systematic

While equity markets are volatile, continuing to invest in staggered investments like Systematic Investment Plans (SIP) and Systematic Transfer Plans (STP) can prove to be a good investment strategy for people who neither have time or adequate resources to start investing on their own. The biggest advantage of SIP right now is rupee cost averaging i.e. you invest a fixed amount of money at regular intervals irrespective of whether the markets are going high or low. This ensures that you buy more units when the markets are low and lesser units when they are high. This approach brings down your average cost per unit over the long-term. 

Trust Experience

It is important to keep in mind that our economy has faced many such challenges and overcame them. COVID 19 will have an impact which will be felt along the years, but it is critical to analyse such situations for hidden opportunities and be alert at all times as the markets continue to fluctuate.

Share This:
Tags: alternate investment coronavirus coronavirus pandemic COVID-19 Impact on Economy financial markets IMF Opportunity
Previous post
Next post

KredX Editorial Team (Website)

administrator

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Enquire now

  • Invalid value

  • Invalid value

  • Invalid value

The Best Of Alternative Investments, Now On Your Phone

Download App:

KredX Blog KredX Blog

Wing ‘A’, Ground Floor, Office-1 Block-‘A’, Salarpuria Softzone, Bellandur Village, Varthur Hobli, Bangalore South Taluk, Outer Ring Road, Bangalore – 560103

+1 212-602-9641

info@example.com

Get More Location

Follow us:

Download app:

Company

Home
About Us
Careers
Contact Us
Our Offices

Resources

Blog
Reports
Whitepapers
Knowledge Base
Podcasts
Webinars

Support

FAQs
Talk To Our Advisor
Chat With Us
Sign Up
Login

Legal

Nodal Officer Name: Amrutha A / Ph: 08061799200, IVR-9 / Email: Amrutha@Kredx.Com
Terms And Conditions
Privacy Policy

Investor Products

Invoice Discounting
Bonds
Digital Gold/Silver
KredX Assured

Business Products

Invoice Discounting
Buy Now Pay Later
KredX Cash Management Solutions
KredX Global Trade

Quick Links

Business Partner Program
Financial Advisor Program
Business Suite
©2022 Minions Ventures Pvt Ltd