I have Rs 1.5 lac to invest.My age is 52 years.I have already enough investment in Equit MF.I wish to invest in debt investment in view of less risky investment & for Retirement corpus.
1)Nowadays since last 1 year , Liquid & arbitrage funds are doing better than Ultrashort term MFs.Shall I go for Arbitrage funds or ;iquid funds?
2)What is your opinion in FMPs Are they better than FDs.If yes , which FMPs do you suggest
- If your requirement is an immediate one, then stick to Liquid Funds (in fact avoid Arbitrage Funds as they are only suitable if your holding period is more than a year). However, if your holding period is more than 2-3 years away, then part of it in Liquid and another parts in Arbitrage and Ultra Short Term Funds suitable to you.
- FMPs comes with Lock-In features, which is not with Bank FD (you can withdraw at any point of time by paying small portion of preclosure penalty). Hence, check your suitability and invest accordingly. Personally, I am against a product which locks my money.
This popular instrument of investment is led by professionals, who are experts in this field. These people are generally referred to as fund managers, and they decide whether the money will be invested in shares or bonds. The decision is taken on behalf of the investors and it mostly depends on the type of mutual fund.
Here, a lot of investors’ money is collected to form a pool which is invested in diversified mutual funds. The investment made by the fund managers is diversified enough to cope with any potential losses the corpus might face. The profit earned is shared by the unit holders and the fund managers.