How To Manage your Investments During the Pandemic?

There are some things you cannot forget even during a pandemic that has the world in its grip. Personal finance and money management is one of those things. And within this, investing certainly plays a major role in your financial prospects.

So now that the coronavirus is doing rounds around the world, what are your wealth management plans? How are you planning to take care of your savings? Are you planning to invest to get the desired returns?

Covid-19 is perhaps the first of its kind that has left investors in so much confusion. Right now, the stock market is still bullish since investors are negative and fearful of the future. The truth is no one really knows what the future will bring. However, till then we need to manage our wealth, even as a recession may be on the near horizon.

For your money management, here are a few tips to help you out.

1. Assess your risk tolerance:
   Many investors right now have their portfolio devastated by the effects of the pandemic-induced lockdown. Creating wealth is tough right now because the risk factor has increased many-fold. Many have their jobs and income hit as well.
   Risk tolerance is an important component in investing. It marks the degree of variability in investment returns that an investor is willing to withstand in their financial planning. For instance, when you make a particular investment, you may have to keep in mind that you are running the risk of losing a certain percentage of that amount.
   If you are financially secure, you may be willing to take a higher risk for a possibly higher return. However, if you are financially unstable, as is the case with many during this pandemic, you may rethink if the risk is worth losing your footing and falling into debt.
   Thus, if you are thinking of investing right now, you seriously need to reassess your risk tolerance. For instance, maybe you had a risk tolerance of 40% of your investments, but after the pandemic, you cannot take losses at all. So for investing, these are some of the things you need to keep in mind.

2. Write down your financial goals again:
   Here is a very important question you need to ask yourself: why do you want to create wealth? It can be any reason you like. The next question would be how do you plan to create wealth, and what are the risks you are willing to take for it. Look at everything realistically.
   For instance, maybe you want to increase wealth by investing. However, realistically, investing is risky. Income streams are on the verge of getting choked off. These are the things that can impact your chances of having a peaceful investment plan.
   So find out again why and how you want to grow your wealth. For now, for instance, you may decide to discontinue investing and save up money. If you still want to invest, it might be a good idea to diversify your investments.

3. Balance your investment portfolio again:
   This is one of the most important things you can do. The investment market is not the same as it used to be before the pandemic. Depending on your risk appetite, your backup and emergency funds, your age and other criteria, you may have already invested somewhere before the pandemic.
   However, right now with all the economic turmoil and slowdown, your investment portfolio may be going through an imbalance. Right now, you need to balance your portfolio again. You may want to start by increasing and/or decreasing your investments in some areas to avoid excessive risks. For starters, you may want to reconsider your choice to invest in stocks or mutual funds, depending on which is better in the current situation.

There you have it; fresh tips to keep your money invested safely, even in the current turbulent circumstances. Follow these three tips, and you’ll be well on your way to better managing your money and investments.