Future of Finance: How to Invest During a Pandemic

Future of Finance: How to Invest During a Pandemic

Over the last few months, the coronavirus and the subsequent lockdown has changed our lives in almost every aspect. Many people have lost jobs, and most of us have sapped up our savings. In such a time of crisis and uncertainty, one should know the best options to manage our money. What stocks are the best to invest in?

Indian investors and financial consultants are growing with the consensus of diversifying investments worldwide to alleviate the risk of uncertainties in the domestic market.

Here are some segments expected to make good profits:

  1. Healthcare and lifestyle sectors are expected to see major changes after the pandemic. Insurance is still an underutilized sector in India. Earnings of HDFC Life can grow at 15 percent over the next 10 years.
  2. Gold is going to be a reliable performer over the next 1-3 years.
  3. Marriage is a $40 billion industry in India. It is estimated that it will keep on growing in double-digit for the next 15-20 years. All the businesses are still in a very budding stage and have potential.

Let’s take a look at the 5 stocks that are well suited for long term investment during the pandemic:

1. Kotak Mahindra Bank

Kotak Mahindra is one the most sought after banks in India, despite being formed much later than many other banks. The bank has delivered phenomenal growth, starting from its inception in 2003 till now.

This bank is the third biggest in terms of market capitalization after HDFC and ICICI.

If we consider performance parameters such as capital adequacy ratio, non-performing asset, etc. Kotak Mahindra Bank clearly sets the benchmark. It is definitely a good option to invest in at the moment.

2. Asian Paint

Asian Paints Limited is India’s largest paint manufacturing company. They have also recently entered into the home décor sector with their new product portfolio of bathroom furnishings.

The company has its business across the globe, now operating in more than 65 countries. What makes this company a striking investment option is the brand value and brand equity it carries.

Asian paint has been debt-free and its entire operation has been funded by equity.

3. Bajaj Finserv

Bajaj Finserv Ltd has been a very profitable venture, providing great returns in recent years. The company is into the lending business.

The value of its stocks has soared over the years. Starting from Rs 350 in 2010 to Rs. 7500 today. This is a low risk and moderate return option which is best suited for the current financial scenario.

4. Pidilite Industries

Pidilite Industries Limited is the manufacturer of the famous product ‘Fevicol’. They are the market leaders in the adhesive segment. The company has a distinct and very high brand value. Therefore, there are only a few competitors in the marketplace. The company constantly revolutionizes its product offering, which makes its business model sustainable.

Returns on equity for Pidilite have been healthy and it hovers around 27.2%. The stocks have moved from Rs. 50 in 2009 to Rs. 1,296 in 2019. The company has no debt.

5. Tata Consultancy Services

Tata Consultancy Services Limited is the biggest IT sector enterprise in India. It has a $100 bn market valuation. For the last many years now, it has consistently shown double-digit growth. It is the largest contributor to the Tata Son Group of business.

The company has delivered profitable returns since 2014 and continues to have strong fundamentals.

This list gives a general indication of the trends in the stock market that is to be expected in the future, post the coronavirus pandemic. Investors must make an informed decision to figure out the best investment strategy according to their needs and goals.

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