Is this the right time to invest amidst the crisis?

Yes, but with a bit of caution.
If I would have been in your position and with 3.5 lac cash in hand I would have divided them into several chunks of (20%-30%) of the total and would have invested in a systematic manner.
Current scenario is uncertain as Corona Virus has just entered India and we are still in Stage 2. Whatever fall we have seen in the market is the response to the global factors. So i would say that the local panic is not yet factored in and NIFTY is yet to correct.
Looking from an investor’s point of view I can completely get your psyche of entering at this mouth watering level.
But as they say “All that Glitters is Not GOLD”.
NIFTY and its constituents may look mouth-watering but there is a risk of downside in the market.
Reasons: 1. We are amidst a health crisis
2. The economic impact of this deadly virus is yet to be measured
3. The disruption it has caused to the sectors plus the global supply chain has not been equated yet.
So the smart thing to do is pick up some fundamentally strong companies and invest 20% of the total amount and wait for any dip.
Now your next question will be what about the rest 80% and what if the market only moves up from here?
Valid question sir.
My answer will be, you still have 20% of your capital invested and will give you some sort of return.
The rest 80% of the capital which in case you invest in a bull market will definitely give you some return not as much as you would have expected but will surely give you more than the average return.
But what if our assumption is wrong that the market will only move up and you have gone all in, in the market. There is risk of a negative return here and a possibility of waiting for a longer duration to get your desired return.
There is a saying in the market “I don’t mind buying something at a higher price which will give me small return but I do mind something at a lower price which may not give me any return”
So my suggestion for is to invest 20% of the capital now, the next instalment when there is another dip or panic.
You will ask when? and where to invest?
After touching a low of 7500 the markets have moved up to a level of 9038. (20% up).
Any smart investor will look to book profit as it is a V-Shaped relief rally.
So the opportunity will be around 7900–8200.
Stock Where you should be looking to invest:
  1. HDFCBANK
  2. KOTAK MAHINDRA BANK
  3. BAJAJ FINANCE
  4. BAJAJ FINSERV
  5. HDFC LTD
  6. ICICI BANK
Why banking?
BANK-NIFTY being the biggest member of Nifty50 sector and any rally in the market will be lead by financial sector and what better than the leading players in the sector. I wouldn’t say invest in all. Do your own analysis and invest.
If you still have queries, feel free to visit the below link where we post our views on Index as well as some stocks.
PS: Our blog is an educational blog. It is to increase the financial literacy of our viewers.
DALAL STREET MONARCH
Gaurav 
(30th March 2020)

##Disclaimer: The above suggestion is purely educational. I am not advising a buy or sell recommendation on any script or Index

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