You may have saved on many of your expenses while working from home. Most employees working from home do not have to spend anything and are saving in every way, from transport cost to eating out and more. But you can make use of this money to earn some more money. Can these savings to power your dream of becoming rich. Yes, this money in bank can lead to creation of more money. In short make your money work even as you sleep!
Whether you should pare off your debts or make fresh investments, all your queries will be answered here in this edition of Money Guru by expert Vivek Bajaj, co-founder of Stockedge.
Yes, most companies have allowed their employees to work from home. Since they have been forced to stay inside, it has turned out to be a blessing in disguise as many of us have been able to save some money in the process by cutting down expenditure.
Discretionary spending like eating outside, movies and other entertainment have come down.
Where to invest?
Even in the times of pandemics, the markets have been bullish. This could be the right time to enter into the markets. There are sectors which have been performing well. The markets will give you opportunity to invest when they fall, thereby creating buying opportunities. If you have a lump sum amount then you can invest in mutual funds. This investment avenue will give you higher returns than your bank Fixed Deposits or savings account. Mutual Funds have potential to give good returns in the longer term.
You can invest in the form of SIPs also. This is one of the most disciplined way to invest in markets. One must invest in accordance with their targets.
The targets could be long term or for 2-3 years. For short term targets, debt mutual funds are a viable option. For long term, equity mutual fund is right. Your investment will be handy at your time of need.
He also advised investors to create an emergency fund to meet out any eventuality. Liquid funds can be your emergency funds.
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Bajaj advises investors to invest in funds that have global exposure. He said that Parag Parekh Long term Equity Fund is a good investment option. It is also important to have a life insurance plan, he said.