Sir I am looking to invest money in a safe investment than bank. Like in a bank either you get 4% or FD interest, which is also 8%. And they also deduct tax if intrest amount is more than 10000. So please suggest some avenue which will give good return, safe and no time problem. As this is a surplus amount.
Satyam-If SAFETY is your major concern, then I think it is best to keep money in your home as this is the ONLY safest way of keeping money than Banks.
Do remember that in one way you look for safety and in another way looking for better return than Bank FDs or Savings Account interest. Let me know for what purpose you are holding this money. Based on that it is easy for me to guide you.
Thanks for responding. My question is straight forward. Please suggest Mf in debt markets. Liquid or arbitrage or debt oriented mfs. Which will have comparative better return. And second part of qn what is a dynamic fund. Is it a better alternative in current scenario of low fd interest.
Satyan-Never ever be in wrong belief that debt funds are SAFE. They too volatile in nature and risky based on the interest rate cycle and also the nature of papers they hold. Hence, if your conerns is to earn decent return (more than bank FDs) and holding period is more than 3 years, then go for short term debt funds and arbitrage funds. Dynamic funds promise to change their style based on interest rate cycle, but hard to believe and track. Hence, to be safe, stick to short term debt funds.
Thank you sir