Continuation of FD / investing in MF
Anusridi wrote : "Dear Matrubhai,
One of my Bank FD which was giving 8.75% of interest has matured recently and if I continue for another one year I will get now 8.25% . I request your kind advise in this regard whether continue as Bank FD or put in LICMF floating rate fund (G)/Can Rebecco Gilt PGS(G)/Can Rebecco Income (G) LICMF liquid fund (G). Earlier I have given you u my portfolio that I am having MFS about 4L which are now about 2L due recession.
Please advise (within 2-3 days if possible).
With best wishes,
SRIKANTH SHANKAR MATRUBAI replied :
Bank FDs are safe, but in terms of returns, they are always low on my ranking.
The Debt Market is expected to see sharp volatility in the coming days. With the Inflation going into negative terrority, the yield curve would see a steep fall due to abundant liquidity in the system and the demand for short maturity assets. Rate cuts in the Credit policy should help improve the market sentiments, a sharp rally in the bonds is ruled out due to the bulging Fiscal Deficit.
For Short Term Investment, Liquid Funds is the way to go, for a slightly longer term investors, say upto 12 months, Gilt Funds and Active Income Funds should be advisable.
If you have decided to stay invested for 1 year, you can go for Income Funds like HDFC Income Fund or better still, invest in Corporate FDs like CNBC TV18, which offer 11% return for a 1 year FD.
Corporate FDs too are a good tool of investment and give better returns than traditional Bank FDs. And yes, they are quite secure too.
As for advice on your portfolio, You better send me your holdings for me to guide you. But, still, it should be noted, you are better off staying invested right now rather than selling at a loss.
Best of luck,
Srikanth Shankar Matrubai
Also visit http://equityadvise.blogspot.com
Srikanth Matrubai is known as the WEALTH ARCHITECT. He is practitioner of Wealthy Habits and author of Amazon Best Selling Book DON'T RETIRE RICH. We strongly urge to follow your Advisor. This blog is purely for information. However, we strongly suggest you to consult a Financial adviser. This blog is purely for information purposes only and we do not take any responsibility whatsoever as the blog content may be changed from time to time and is generic in nature.
Sunday, June 28, 2009
SHALL I CONTINUE MY FIXED DEPOSIT INVESTMENT????
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Hey I will suggest you that you should continue and get 8.25% its risk free...ReplyDelete
Even corporate FDs are risk free, my friendReplyDelete
Its very nice to know that such a wonderful blog exists and helps all investors. Great job, keep doing it.
I just read this Corporate FD and when i checked in the web that CNBC TV18 is not accepting the fixed deposits now? is it true?
Network 18 & Media is accepting Fixed Deposits at a very attractive interest rate of 12%.ReplyDelete