Top Money Making Investment Ideas During COVID-19

After the lockdown announced by PM Narendra Modi, the industries in India has come to standstill. The sudden announcement has wiped off the start-ups and has brought small and medium- term industries on the verge of collapse. This has led to widespread unemployment, salary cuts, and retrenchment of the employees you definitely need some investment ideas.

However, in this pessimistic environment, certain investment ideas can help you to make money.

5 Investment Ideas During COVID-19

Long term SIP

Though the stock market is crashing, we advise you to continue investing in long term SIP. The reason for this is in these times SIP will help you to set future gains. The logic is when equity markets are down, the fixed monthly amount will below and you will get more units. When prices will recover, then you will get you out-sized gains. Stopping investment in SIP would prove exactly the opposite.

Best Mutual Funds to Invest – Mirae Asset Emerging Blue Chip Fund, Aditya Birla SL Equity Advantage

Invest in Arbitrage Funds

Arbitrage Funds is the best way to earn money. This category is witnessing healthy inflows of funds since April. In current volatile times, they are the best bet. These funds buy stocks in the lowest price spot market and sell it in high-priced future market. The difference in the price is the return, irrespective of price movements.  Moreover, as arbitrage funds invest in equity, they are taxed as equity investment. This makes it more tax-efficient than debt funds. The condition is the investors should be willing to hold these investments at least for 6 months to let the position to play out fairly and the investor should check the quality of funds before investing in.

Best funds to invest – Kotak Equity Arbitrage Funds, Nippon India Arbitrage Funds, Aditya Birla Sunlife Arbitrage funds, ICICI Prudential Equity Arbitrage Funds

Investing in large- cap mutual funds

Many investment experts are recommending investors to invest inlarge- cap mutual funds and it is for the reason. These are the companies that have the resilience to stay ahead even during the crisis like the current one. Large- cap mutual funds and stocks are predicted to normalize the economy because of their stronger balance sheets. In these times, investing in large- cap stocks is an attractive bet.

Best funds to invest -Axis Blue Chip Fund growth,  Nippon India Large Cap Fund, ICICI Prudential Blue Chip Fund

Flexi Fixed Deposits

If you are a conservative investor investing your hard-earned money in Flexi fixed deposits will pay you good returns. You can easily withdraw money from your savings bank account itself. The money kept in Flexi fixed deposits will not be reflected in your savings bank account, so there would be no temptation to spend it. Investors should be cautious and should not keep emergency funds in cooperative banks rather they should keep the money in the nationalized banks.

Investing in liquid or overnight funds

Right now, one must not be aggressive with their investments and we recommend you save money in liquid and overnight funds. These liquid funds are a safe bet. For safety purposes, you can spread money across two funds. While selecting liquid funds, select only for conservative managed funds with a high-quality portfolio. The large portion of funds should be in sovereign or AAA- rated papers.

Best funds to invest –HDFC Liquid Fund, HDFC overnight fund, SBI Liquid Fund, SBI overnight Fund, Aditya Birla Sun Life Liquid, and overnight fund, Kotak Liquid Fund.

The lack of immediate liquidity and the current crisis is the reason why experts suggest you not go overboard with aggressive mutual funds. Though sudden market crash has upset your financial planning and this pandemic has broken dreams of many investors, but it is a wake-up call to reshape your strategy with some investment ideas.     

Disclaimer: The opinion expressed in the article is author's personal opinion. Investors are advised to perform their due diligence research before investment.