Disclaimer:- I may be wrong in assessing the effect of coronavirus,but sharing with you what I read & research.
Dear Investors,
I wish you & everyone who belongs to you is safe and healthy. Latest data indicate that contagion of COVID has spread rapidly in our country and across the world. In earlier newsletter sent to you on27.03.2020 corona positives in INDIA were only 606 where today thenumber of positive cases are approx 72,000.
The one and only immediate remedy was to lock-down the country to stop communal spread. As we are a hugely populous country in comparison to western & europeans countries. Lock-down was the primary solution or act which GOI took to stop the infection.
Lockdown has helped to stop the contagion of the virus but it’s not thesolution for this disease.
However,Countries like Germany, South-Korea,France,Belgium have eased the lockdown to restart the economic activities.
Further,Across the world researches are going on to develop the vaccine.
So far ISRAEL & ITALY has claimed to develop the antibody and vaccine. ISRAEL has filed the PATENT and started mass production of Antibodies.
Italy has developed the antibody vaccine which neutralised the corona virus by vaccination.
Though, Both the countries has done animal testing,HUMAN TESTING has not yet been done by both the countries.
In the USA only,more than 100 research are being done.
Some of the Vaccine developing researches are as follows:-
It is Strongly believed, sooner or later vaccines will definitely be discovered.
I must tell you that SARS & ZIKA epidemics ended before the vaccine could be developed
So,what opportunity we have in this chaos & anxiety.
Sensex was at 42,273 on 20.JAN.2020 & It made a low of 25638 on 24.03.2020 in 64 Days it lost around 40 % and now its trading around 31,000 recovered 25% from the lower levels made on 24.03.2020.
It is clearly seen that in the short term market is very volatile, but regular and disciplined investments always reap good returns.
Going through the above table we can clearly see that even in the worst period of time between 2007-2011, where the sensex tanks more than 50% in a year, though it was very painful to continue SIP;like it is in the current scenario, SIP investment has not delivered negative return on investment.
Please do not skip analysing the above mentioned table,I make sure you will be able to understand the concept of disciplined investment and fear of losing money will fade out from your mind. Once the lockdown lifts and the economy starts operating in a routine and normal way.Things will stabilize very soon.It’s just a matter of some months or a year.
If equity markets come down in Next 12-18 months,starting from today it would be the best time to Invest.
I would suggest existing investors not to STOP SIP & if possible, double your SIP for next one year.
For New Investors anytime is the Best time to Start Investing via SIP.
In the last I would only say that Vaccine will come but opportunity will not….
With Best Wishes
Pankaj Pancharia
(Please feel free to connect (support@fundspru.com)
