Invest in debt funds.New Delhi:
It is certain that all the people doing the job must do financial planning. Every person has his own financial situation. It has its own risk factor. Money is limited, so making safe investments is everyone's priority. Therefore, it is important that every step is kept alive. If possible, first the information should be taken and well understood, then the decision should be taken or the advice of an expert should be taken.
Invest in debt products for people with low risk appetite
Many people invest in the stock market in today's era. Everyone has their own portfolio. There are also many people who maintain distance from the stock market. It is certain that the investment of the stock market is full of risk. In such a situation, many people prefer to invest without risk. In such a situation, investment plans should be made only on the advice of most knowledgeable people. Most financial market advisors recommend investing on debt products to people with low risk appetite. Experts believe that if someone wants to invest for up to three years, and is not ready to take the risk, then the first option is considered to be 'fixed deposit', but if you want a slightly higher return than fixed deposit, then you can invest in debt funds. Explain that investing in debt funds is less risky and it also handles market fluctuations. It has been observed that investing in debt mutual funds has given more returns than FDs. Significantly, debt funds are considered to be short-term investments.
For information, let us know that FD in the bank also comes under debt fund. In such a situation, the investor who is not in favor of taking any risk should invest in this fund, otherwise the market-linked debt fund is a good option which has been giving higher returns than FD. Once again, let us tell you that it is related to the market, there is a risk.
As mentioned above, these are very safe mutual funds because they invest in fixed income securities and it matures in 91 days or 3 months. This type of investment involves investing in treasury bills, commercial papers, government bonds, government securities and debentures (treasury bills, commercial papers, government bonds, government securities and debentures).
The important thing is that these funds are a good investment option for those who want to increase money in a short time and hope for some safe investment. Also, invest in fixed deposit FDs from 7 days to 10 years. But even here, banks or financial institutions pay more interest on long-term investment. Short-term investment is not advisable here. Banks also pay almost the same interest on short-term investments as a savings bank account.
Liquid fund investments without lock-in period
Liquid funds, as mentioned above, are short-term investments in debt securities and last up to three months. Liquid fund investments come without a lock-in period. Therefore, there is no exit load in it. In this fund, the investor can keep his investment for as long as he wants because the fund manager invests in the fund performing well on time. And you can remove it whenever you want. This is why it is called a liquid fund.
Only up to 25% of any sector investment
The special thing is that only up to 25 percent of the liquid fund can be invested in any one sector. Moreover, they can be invested only in listed debt instruments (corporate fixed deposits, non-convertible debentures NCDs, debt mutual funds, market-linked debentures (MLD) bonds, debentures, leases, certificates, bills of exchange, and promissory notes, etc.). Under this head, 20 percent of the amount is kept as net asset. Since liquid funds can only invest in short-term securities such as money market securities and cash, there is no scope for much capital loss or sharp increase as these investments are in fixed instruments and these fixed instruments have a high credit rating.
Keep an eye on the market
One thing to keep in mind is that this investment is good in such an environment when interest rates are increasing in the market, loans are becoming expensive. There is an inverse relationship between the price of the bond and the interest rates.