The mood in the economy is great and the story says India is growing. The moment this mood floats in the hearts of Indian investors, discussions and debates kick off on the importance of investing in equities. Sadly, the history says this does not stay long. It stays till the markets are going up and when something drastic happens, people start cursing the markets again.
Investors in mutual funds have several choices with respect to their investments and while there has been a reduction in the number of funds that are present in the market the situation has not yet been fully cleared up. What this actually means is that there are still some funds that might seem to look similar but are different and the investor often has a hard time trying to understand the difference between them.
Surbhi, 34, has just got a year-end bonus of Rs 2 lakh. She wants to invest the money. She is aware of the high return potential of equity, but is wary of the risk involved.Â
Short Term funds generally invest in debt securities with maturities ranging between 1 to 3 years. In other words the money is lent to different companies, banks, NBFCs ,government etc for 1 to 3 years. Since the tenure of lending is slightly higher for Short term funds compared to Ultra Short Term Funds and Liquid funds, most often we get marginally higher returns
Sometimes, you are better off not doing some things. Here are 66Â such things that you shouldnât be doing:
- Dont spend to show off. (why)
- Dont forget about inflation.
- Dont save less than 10% of your annual income.