Investments are made to meet both long and short term goals or to have some regular cash flow to provide for your daily necessities such as from the dividend income earned on stocks or MFs. And now amid the pandemic and likely uncertainty ahead you may want to be further safe with your capital, while making good enough money much to sail through the immediate crisis.Here are the different investments which have reacted to their various influential factors and gave the below return thus far i.e. until the seventh month of the ongoing year.
Nifty has been the biggest loser and after striking a record high of 12430 in January this year, it quoted at just 11073 as on July 7, 2020. This means a straight year to date decline in investments on Nifty of 9.1%.
On similar lines, BSE's Sensex was also having its good stellar run and before the pandemic hit a life time high of 42273 on January 20 and now is quoting with a comparable different from it. This is also a 9% decline in investment on Sensex since the start of the year
3. Equity Linked Savings Scheme or ELSS Mutual funds:
The mutual fund scheme chosen for tax advantages has also delivered a negative return of 7.97% during the time span of 7 months.
4. Large-cap, Small cap and mid-cap mutual funds:
All of these mutual funds also delivered negative returns with the lowest negative return of 4.87% on mid-cap mutual fund schemes.
5. Real estate:
Much to the surprise of investors, return from the real estate has also been in the negative zone, though of a minor scale of -0.2%. And the corona situation has made it worse with prices receding in the costliest spaces.
6. Bank FDs:
Abundant liquidity and back to back policy rate cut has also led to interest rate cut on bank deposits to an average of 5%. This is a good return though considering the current market timing and precisely risk-free return.
On January 1, 2020, 24K of gold was priced at Rs. 39200 while as on July 31, gold price of similar purity was available at Rs. 52900 per 10gm. This is a massive return of close to 35% in a matter of just 7 months.
Silver has been the outperformer having run the sharpest in the last few weeks or so driven by the pace at which yellow-metal was rallying. On January 1, 2020, 1 kg of silver was priced at Rs. 46665 while as on July 31 it was available for Rs. 64750. This is a massive return of close to 36.6% on a year to date basis.
But this investment in silver is certainly not for the fainted hearted as when the white metal gains it gains and when it falls it falls very steeply.