If I wanted to invest 2 lakhs – Is it a good idea to invest 100,000 in short term gilt and 100,000 in arbitrage fund now(lumpsum)? as FD rates are going down..for short term say 2 -3 years..and what do you think about dynamic bond funds in this current scenario?
Please let me know your views.
You can do so but do remember that Arbitrage Funds can give you tax advantage but guaranteed returns. Because if there is no arbitrage opportunity in market, they simply hold it in cash.
Dynamic Bond Funds adjust the portfolio based on the interest rate movement. I am here to invest and expect safe return from debt than play with interest rate cycle. I can do those with equity right?