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In the Covid-19 time, making the right investment is crucial.

The cryptocurrency market is now in a state of flux. Bitcoin, Ethereum, Dogecoin, and other cryptocurrencies lost roughly 15% of their value last week.

There are days when billionaire Elon Musk backs them up, and then there are days when he doesn't. The majority of trade in these new assets is speculative.

Investors who are withdrawing money from these assets in a panic may be buying equities assets or gold. Last week, equity markets all over the world saw a significant increase. Gold prices have risen as well.

The factors that influence financial markets around the world are no longer tied to interest rates or corporate earnings. They are mostly used to transfer funds from one asset class to another.

Investors are divided into two groups. One group consists of people who are extremely knowledgeable. They have access to the most up-to-date data on the world's biggest economies and marketplaces.

They are well-versed in market cycles and concentrate on making well-informed asset allocation decisions. This group includes institutional investors and high-net-worth individuals.

People like you and me make up the other group of investors. You can't pretend to be an expert on anything. You have access to knowledge at the same moment, but your obsession with work inhibits your ability to connect the dots. Investors who know a lot of things are driving the current financial market volatility. They've dabbled with a variety of asset classes, including bitcoin, and some are either taking profits or diversifying their holdings.

Diversifying the risk 

Risk diversification is important at all levels. You could be the most risk-averse investor on the planet. You might have access to the most up-to-date data and information for managing your finances. Even still, risk cannot be completely eliminated. You can only keep it to a minimum during your lifetime by using common sense.

The ancient adage, "Never put all your eggs in one basket," holds true. It is the most effective strategy to safeguard your assets. If it is true for a competent investor, it is also true for you. There will be temptations throughout your life. Bitcoin's value has risen from a few hundred dollars to $ 30,000 in just a few years. However, not everyone can strike it rich and earn a multi-bagger right away. To take your moment at some point, you must have been in the game for a long time.

Fixed deposit and other safe assets

Cash in the bank, fixed deposits, money in the public provident fund, Kisan Vikas Patra, and other government post office programmes are all examples of safe assets. The government has established a system for determining the interest rates on these securities. The current rates on these schemes, according to the most recent RBI Bulletin, are greater than the formula calculated using market-linked interest rates.

As a result, the government is responsible for the difference of up to 1.5 percent. This is the gap between the administered and market rates for these programmes. Given that India's economy is predicted to underperform and tax income is forecast to fall, the government will most likely view the gap as a burden. If the lock-downs are lifted and the economy does not develop at the anticipated rate, these rates may also fall. You should consider diversification from below-inflation returns.

Equity assets

Over time, your money can only grow in equity assets. Your investment must outperform inflation. Your entry point is Systematic Investment Plans in exchange-traded funds or diversified mutual funds. The NPS, or National Pension Scheme, provides market-linked returns. Taking advantage of the NPS's additional tax benefits and equity-linked returns would be beneficial.

When it comes to equity assets, firms want to increase their income and profits. Profit growth is reflected in the price of a company's stock. You must guarantee that a sufficient portion of your monthly surplus is allocated to equity investments. You might meet with a financial advisor right away if you were searching for a good time to start. There is no right or wrong time to begin investing for the long run. Inadequate ownership of equity assets is just as dangerous as too much allocation to equity assets.