Question

How you would use the planning tools for your personal financial plan in today's global pandemic environment?

Answer 1

One can use the various planning tools for personal play in global pandemic environment through-

A. Investment into mutual funds which are highly diversified securities and they are used as a tool for investment into future for better benefits and they could be diversified and customised according to the need of individual.

B. one can also take exposure in stocks and if he is able to manage with the momentum of these stocks and volatility of these stocks then you should be trying to manage with the portfolio of well diversified stocks.

C. one who is managing his own portfolio should be trying to take exposure through derivative contracts in order to counter the wild movement and high rate of fluctuation in the market through derivative

D. one can also use gold and other bonds in order to hedge with high level of volatility associated because these are considered defensive assets

E. one should be trying to prepare an emergency fund in order to counter with any risk of unemployment during such situation

F. One should be trying to manage the volatility through taking volatility index options in order to manage with higher volatility and erosion of value of the portfolio.