Savings and investments both are important to rethink post-pandemic. Investments that are related to the stock markets in equity funding at present scenario or the savings in the banks are providing the interest almost near to zero. While for the senior citizens the interests are somewhat better than comparing to the other savings.
Major Banks of India, with accounts on fixed deposits, are providing the fluctuating interest rate changing every six months targeting the senior citizens. The interests are not expected to drop in the upcoming days in the account of the fixed deposits.
Fixed deposits have been a traditional method of saving money, which has been one of the safest ways to keep your money. The principal amount will remain intact, while the interests will reduce or increase, though fewer chances to increase except the senior accounts of fixed deposits.
Investments in the stock market after the pandemic
Nothing exceptional can be expected in the stock market when the entire economic recession is rolling globally after the Covid-19 pandemic. The downfall widespread from the euro-economy to the Asian economy, no difference in the investments are observed to raise, it is a historical steep fall of the economy. When looking into the stock market, the investors who have a high risk of their limited capital.
It is obvious that during the low market, the capitals should be gamed into the stock market with proper research of the companies and the market. Rethink about the savings and investment that may block your capitals with a risk. Overlooking the pros and cons of capital protection and the necessity of increasing the savings in your account with the minimal interest can bring hard times that are long to exist.
For those who are long players in the stock market has to put an eye on the flow of the liquid money and the different terms that are related to the liquidity specifically for the high stock returners.
Recently observing into the liquidity post-COVID-19 pandemic when the Government of India has restricted the interests to the lower level; comparatively the flow of the liquidity has always shown an opposite graph. It shows a peak with high prices of the stock, no doubt, considering it as a short-term return to the investors.
Investors need a second thought on investing based on the short term return on the rising prices of the stock markets. Well! Investors who have invested almost before the market stock peaks and before the worsen period of the Covid-19 will find some good time in with an increase in prices, with the roll of the companies in stock markets.
Above all, we have to also look into the midcap and small-cap funds that indicates the low progress in the 10-year returns. Unsatisfying to the returns ranging from the 9.05 to 9.74 percent that is seen in the 10 years returns.
So, being highly calculative it is important to save the maximum, while if you want to invest then the interests from the capitals can be implemented as an experiment to check the stock market. Comparing between savings and investments, it is necessary to intensify into savings rather than risks on investments.
