Blog : Tips for managing mutual fund investment during the lockdown

The Corona out-break is collapsing the economical growth of every country. This highly contagious disease has forced us to be locked up in our houses. The government has enforced lock down all over the country to save the citizens from this deadly disease. A complete lock down means, none can go out of their house unless in emergency cases like medical needs. All the shops, factories, transport system and markets are closed for more than 2 months.

This has a major impact on the financial condition of every country. The medical expenses, establishment of emergency hospitals, producing test kits, supply of free food and masks are already creating pressure on the government. The nation-wide lock down has paused the economical growth totally. For counties like India, agriculture is the backbone of its economical growth. Due to Corona outbreak, the country is facing great agricultural losses that are very difficult to recover. Because of the lock down, more people are now wandering jobless. The monthly income of maximum people has dropped to 0. Mainly for those who live their lives on their daily earnings are dying of hunger.

The stock market has crashed badly. All the market investors are facing a great loss. People are withdrawing all their investment from any risky schemes. This is making the condition worse. People who have invested their money in mutual funds like, Systematic Investment Plans are unable to pay their monthly amount.

An SIP is a type of mutual fund where people are not obliged to invest the whole amount of money at one time. They invest a part of the payable money daily or monthly. From each month s salary, people have to invest a certain portion for a fixed time. This was beneficial when their income was stable. But now, with no income, investing money monthly has become a headache. That is why people are more likely to withdraw their all investments.

During lock down, the price-hike of essential commodities are also creating an economical pressure on middle class families so all their savings are spend on buying daily needed materials. In this condition, investing for future has become less important.

But for people who are not under such economical pressure are advised to carry on their investment plans to secure their future, because when all this is over, we have a great struggle to face and challenges to overcome. People must be patient and careful about their each investment. If needed, they can take the advice of professional advisers as well.

COVID-19 outbreak has changed the total scenario of the world economy in few months. Like all other fields, this change in economic sphere will create many challenges and issues in our upcoming days. Our working style, ethics, manners and thoughts are changing rapidly. This will bring a huge transformation in everyone s life.