THE recession introduces an element of uncertainty about the future income. So the first thing one should address is meeting future needs in case there is a drop in salary or worse, one loses a job. This part of the money should be put in a place which is safe, and offers liquidity according to one's need.u00a0 The agency with whom the funds can be entrusted depends on the prevailing conditions around.

In case the investor has money more than what is required to meet this first requirement, he or she should study the time period for which he can spare funds. A longer time frame provides more flexibility. In the initial stage of recession, one should invest in large liquid stocks with strong financial muscle in defensive sectors such as FMCG, pharma. As the recovery sets in, move out of defensive stocks and invest in cyclicals that are expected to lead the recovery. Generally, automobile is the lead indicator and is usually the first sector to recover.

'Invest in power, power equipment, technology and banking'
Dipan Mehta Head, Dipan Mehta Stocks and Brokers Pvt limited

I advise investing in stocks like power, power equipment, technology and banking. One should invest in equities but not at this moment. They should do so gradually and after the election results, which is mid-May.

I recommend debt market mutual fund (mutual funds in government and corporate debt instruments). About which sectors one should invest in, get yourself an advisor instead of trying to figure them out on your
own.

Fixed deposits have no risks and you can lay your bet on it. Insurance is also the least risky, but is very expensive.

'Invest in companies with projects in the pipeline and with orders to execute'
Dr V V L N Sastry, Country Head, Firstcall India Equity Advisors Pvt Ltd

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Invest in companies with projects in the pipeline like LNT and ABB, which have orders to execute. This is good if you look at it from a longterm benefit view. Conservative private sector banks like Axis and HDFC also look good. Mid cap IT stocks with focus on the health care segment, for example outsourcing companies which get projects from US, which is trying to cut down health care cost aggressively. An example of this is a company like Accentia.

Gold is a good option. On every decline, one can buy gold. One should wait before investing in a flat; costs haven't reduced much. Real estate is not an alternative to stock market.

Equity is good investment and has long term benefits. One should not have a short term outlook. Short term outlook doesn't give equity an option. One should not have a trader mentality as it is a short term outlook.
I recommend investing in government securities.

'Gold is the best and liquidity is the key word'
Alex Mathew, Head, Research Centre Geojit BNP Paribas Financial Services Limited

The best bet at this moment is gold and liquidity is the key word. Bonds are the best option and bond prices are moving up. One must note that returns are more during recession. Investing in platinum is a good idea as the price has decreased since the automobile industry is facing a slump and the demand for platinum as gone down.

When investing in stocks, one should go for large gap stocks and avoid automobile and realty stocks. I recommend investing in stocks like communication, infrastructure pharmaceuticals and FMCG.

Advised break up of how you should invest your savings this recession:
>>20 per cent in equities
>>50 per cent in precious metals
>>10 per cent in government bonds