Investing during COVID-19 Pandemic

Due to the bad economy caused by the COVID-19 pandemic, the interest rates on different types of savings have gone down. On a fixed deposit for 1 year to 2 years the interest rate is just 5.6%. So, should you save money in a fixed deposit or invest in mutual funds?

Currently, NIFTY 50 is 20% less than its 52 weeks high. Let’s assume that it takes 1 year for it to get that 52 weeks high index. So, if you invest in an index fund today, after 1 year you will get around a 23% return. 

Let’s assume that it takes 2 years for it to get that 52 weeks high index. In that case,​ you are still getting more than a 10% annual return on your investments.

I use Groww to invest in mutual funds, stocks, and (digital) gold. You can also join Groww and start investing in index mutual funds.

Mutual fund investments are subject to market risk. But I am optimistic enough that it will give a better return than FDs in the next 2 years.