The second wave of Covid-19 has caused immense financial hardship to the people. Many have either lost their jobs or are facing salary cuts. The unexpected expenditure and tight finances have led to a huge shock to the earnings of many families. This has also derailed the investment planning of these families.
The need of the hour is to plan and manage whatever is at hand effectively. At Money9, we strive to prepare you for such challenging times and help you better overcome them.
The Money9 Helpline hosted Rachit Chawla, CEO of Finway to help our callers navigate through financial distress.
Chawla: Both companies, ICICI Pru and Bluechip are branded companies. If these are not performing well today. You should check available websites for peer comparison. If in peer comparison all the funds are not performing well it means that there is no issue with the specific fund manager rather all funds are not performing well. In this case, you should exit and save your value cost. If companies are performing well then you can invest. So make sure you check the peer comparison of that fund.
Simran Jain: I want to make some passive income, so should I start trading in bitcoin to increase my earnings?
Chawla: Warren Buffet world’s largest investor has said that be fearful when everyone is greedy. You have to be careful if you are trading in bitcoin. A lot of people are tempted and investing in bitcoin. But I don’t think it is a good asset class. It is highly volatile. Trading is an important skill that cannot be learned passively. You have to develop that skill and then only think about trading.
Also, there is a difference between speculative income and passive income. So you should look at opportunities like content creation and other business wherein you can generate passive income.
Arpit Sharma: My income has been reduced to half, and Nifty is high, so should I also cut half my investment in order to meet my daily expenses?
Chawla: I would request if possible cut down on your expenses. First, you have to analyze at what stage of your investment goal you have reached. If you have met your goal, then you can withdraw your investment. But if not then I would suggest not to touch your investments, rather think of ways to generate more streams of income and control your finances.
