During the economic downturn, when there is an atmosphere of lethargy in the market, often there is an atmosphere of panic among the investors. Small investors panic and withdraw their money. However, if this investment is made even in this period, then profit can be made. These 5 things should be kept in mind while investing in a recession.
Keep in mind liquidity
According to finance expert Nitesh Pandey, investors should take special care of their liquidity in times of recession. This round is about investing with eyes open. At this time, no investment should be made without the advice of financial advisors.
You can choose mutual funds instead of stock market
Mutual fund expert Ramakant Mujavadia said that if you are not able to keep a close watch on the fluctuations of the stock market, then mutual fund can be a good option for you. In this, an expert as a fund manager invests your money at the right place to get better returns. The longer the investment, the better. If your vision is 3 to 5 years old then you can get great returns.
Go for equity in the long term
If you are planning to invest in the stock market or mutual funds, then invest for the long term. During the recession, the market falls rapidly, so the short-term investors are more prone to losses.
Debt Fund for Short Term: If you want to invest for short term then debt fund can be a good option for you. Investing in it is less likely to result in losses.
Better prospects in banking and paint sector in stock market
According to stock market expert Yogesh Bagoura, if you want to invest in the stock market, the banking sector and the paints sector have better prospects. PNB and Yes Bank shares in the banking sector will pick up in the coming times. PNB will become India’s second largest bank after the merger of banks and Paytm is preparing to acquire Yes Bank.
Diwali is coming up, you can buy stocks like Asian Paint, Berger Paint, Pidilite. They give good returns every year. These stocks run at a fast pace and do not fall much in the market.