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.