Money9 Helpline: Resolving your financial queries amid Covid-19 crisis

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The unprecedented Covid-19 crisis has turned everything upside down. From exchequer to your wallet, the virus has had  making smart financial management more important than ever before. If we are made to vote the topmost lesson that the situation has taught us, the winner would definitely be financial planning.

At Money9, we aim to guide you through what can be done in order to survive monetary imbalance created by the pandemic. This week Money9 Helpline, an endeavour to help people navigate through financial distress, hosted two financial experts -Poonam Rungta and Amit Kukreja, founder, amitkukreja.com. Rungta and Kukreja shared her valuable insights to address the financial queries of our callers from across India.

Here’s a look at top questions of the week:

Amit Singh, Mumbai: I invested in Rs 50,000 in Fixed deposits for 2 years but in the month of August 2020, I broke the FD to invest in the stock market in the pharma sector. I invested in Aarti Drugs, but even after 8 months of investment, I am in a ‘no profit no loss’ position. Should I invest in any other mutual fund, or keep it as it is or put it back in FD. Please suggest.

I also have Mirae Asset Emerging Bluechip L&M Cap and Motilal Oswal 35 Multi-cap with a monthly SIP of Rs 2000 in each fund. Rungta: From your case, I realize that you belong to a classic category of investors who is a little confused about the financial investment tools and options available in the market. My request to you and all other investors who want to invest their money in the stock market or mutual funds or any other tool is that always take professional guidance. Take help from an expert and understand the fundamentals of the share market and market dynamics first. Before investing, you should first understand your goal for investing and the time frame within which you want to build your money. Do not be influence by facts from here and there.

Anand Sharma, Nasik: With the second wave rising, the pharma sector is experiencing another boom, I want to start a SIP of Rs 1,000 a month in a pharma fund for 5 years. Is it a good option or not? Please suggest. I am already investing a SIP of Rs 1,000 in pharma fund for a period of 5 years, Rs 5000 SIP in Motilal Oswal midcap for 3 years, and Rs. 4000 in Kotak Flexicap for 2 years. Rungta: There is this major sentiment seen among people to invest in the pharma sector, because of the pandemic led boost to the sector. But you should remember that markets are volatile by nature and when you invest you must always think of long-term gain returns. Do not get influenced by trends or market waves, have patience and understand your risk appetite. It is important to first understand your own goal for making the investment and what is your own time frame. Then after understanding that, and given the pharma sector’s performance, you can invest a quotient of your investment, for example, 10 % of your budget in the sectorial fund.

Pramod Desai, Lucknow: Is this the right time to invest a lump sum amount in HDFC Flexi cap fund? Kukreja: Considering the market dynamics, I would not advise lump sum, rather spread out your investment for 12 months. There are schemes in the Flexicap category where you can invest, like Parag Parikh Flexi Cap Fund, Motilal Oswal Nasdaq 100 Fund of Fund, Kotak Flexicap.

(Send us your questions on WhatsApp on this number — +91-9311121874)