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3 Tips to make the DOWNTURN work for you

3 Tips to make the DOWNTURN work for you

The world has changed a lot in the last few months due to the COVID-19 pandemic and slowly but steadily it is trying to minimize the damage of the pandemic. In India, an economic downturn is expected in the coming months owing to the countrywide lockdown.

In the current year, the possibility of a lower income is a reality for many but there’s also a silver lining that cannot be ignored. If you think rationally, you will benefit even in these trying times.

Here’s how you can make the downturn work in your favor.

1. Your health is your wealth

Unlike many countries, India does not have a public health care system where the government takes care of your medical expenses. This means that you have to take care of your medical expenses yourself. It will be interesting to note that the rate at which costs increase in healthcare spending is higher than the annual (average)inflation in the economy. Also, the costs increase as you grow older. The expenditure on medicines is usually higher than the hospital charges.

Now, with time on hand due to lockdown, you can focus on improving nagging health issues and save some money. Opt for a healthy lifestyle and take care of yourself as well as your family.

The less you worry about medicine and hospital-related expenditure, the more you will be able to increase your savings. You can choose to either invest these savings or fill up cashflow gaps that will help you tide in today’s uncertain times.

If you have more money left in your account at the end of the month than expected, you should consider investing it.

2. Invest your savings

Thanks to lockdown, we are spending only on essential products. There is less expenditure on movie outings, dinners, apparel shopping, and even fuel for vehicles. It means that you are saving most of your money. If you have more money in your bank account than expected, you should consider investing it. It does not have to be an equity investment. You can consider an investment that will help grow your money.

3. Change your portfolio

Earlier in March, Nifty 50 fell 23% but went up 22% in April. This fluctuation may have gotten you anxious and worried. However, the respite in the market prices in equity assets offers you the opportunity to clean up your portfolio. You can get rid of poor or underperforming stocks and funds.

This is really a good time to make any changes to your portfolio. You may also consider getting help from a financial advisor and see if your portfolio needs any changes. You can use this rebound in the market for a fair exit in funds that were not aligned to your long term goals or simply not working in your favor.


A slowdown is definitely not good news. However, you can definitely look for smart ways to utilize the current market situation. Remember, saving and investing are the best ways to tide uncertain times.


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