How I profited off covid and a market downturn

 COVID-19 was a disaster in many forms.  There was widespread chaos. Yet many people grew significantly richer during this time. Around Feb 2020 stock markets around the world crashed globally, including the Indian stock market. Short-time investors who sold off their shares as quickly as possible during this time lost a lot of money whereas people who didn't get tensed made a lot.

Personally, I feel none of us can actually properly handpick stocks and wait for them to increase substantially. I have always preferred a basket of shares or index-tracking funds. During covid Nifty 50, BSE Sensex  fell to a new low

The BSE Sensex, often referred to simply as the Sensex, is the benchmark stock index of the Bombay Stock Exchange (BSE) in India. It represents the performance of the top 30 companies listed on the BSE based on various factors such as market capitalization, liquidity, and industry representation.

The Nifty 50 is a benchmark stock index of the National Stock Exchange of India (NSE). It comprises the top 50 actively traded stocks listed on the NSE across various sectors of the Indian economy.

Similar to the BSE Sensex, the Nifty 50 serves as a barometer of the Indian equity market's performance and provides investors and market participants with insights into the overall health and sentiment of the Indian economy. It reflects the collective performance of the 50 largest and most liquid stocks listed on the NSE.

During a period of all-time low market performance, families and friends were gripped by panic and began selling their shares, exiting the market outright. Recognizing the significant drop in prices, I promptly urged my dad and grandfather to invest a lump sum in funds that track key indexes.

These indexes have historically shown an upward trajectory in value, making their record lows an opportune moment for investment. Taking advantage of the market downturn, we purchased numerous units at remarkably low prices. As the market rebounded, this decision proved to be immensely rewarding.

I have no intention of selling any of my units and maintain a strong belief in the future prospects of the Indian Economy and the Indian political party. Consequently, I plan to allocate more funds to index funds.

Compared to actively managed mutual funds, index funds boast lower expense ratios and perform comparably well. While individual shares may offer greater profit potential, they also carry significantly higher risk, a venture I am not currently inclined to pursue.