Investment Tips: In today’s world, investing is no longer limited to the wealthy or financial experts. Rising inflation, job and business uncertainties, and concerns about securing the future have led ordinary people to invest. Some are trying their luck in the stock market, while others consider mutual funds a better option. There are also a large number of investors who want safe and balanced returns with minimal risk.
When the investment horizon is only one year, choosing the right option becomes even more crucial. Taking high risks in a short period is not considered wise. On this topic, Ankur Warikoo, known for his financial education on social media, has suggested three investment options for a one-year period that can provide both balance and safety.
Liquid Mutual Funds
Liquid mutual funds are suitable for investors who may need to access their money at any time. These funds typically invest in very short-term debt instruments, such as Treasury bills, commercial paper, and certificates of deposit. Since these instruments have short maturities, the risk involved is also limited.
From a one-year investment perspective, liquid funds can offer better returns compared to savings accounts. They experience very little volatility, and money can be easily withdrawn when needed. This option is considered quite balanced for those who are concerned about their cash flow.
Short-Term Mutual Funds
For investors who want to go a step further than liquid funds and seek slightly better returns, short-term mutual funds can be the right option. These funds generally invest in debt instruments with a maturity period of one to three years. Because of this, they have the potential for higher returns, although some minor fluctuations may occur.
For a one-year investment, short-term funds can perform better than bank fixed deposits. If an investor can tolerate some volatility and accept a moderate level of risk, this option can prove beneficial.
Corporate Bond Funds
Corporate bond funds invest in bonds issued by companies that raise debt from the market. These funds aim to provide investors with a stable income and better returns than bank fixed deposits. For one year, this option can appeal to investors seeking slightly higher returns than those offered by liquid and short-term funds.
Read More- BOBCARD and Etihad Launch Special Credit Cards, Offering Big Benefits for Travelers
However, when investing in corporate bond funds, it’s crucial to understand which companies’ bonds the fund is investing in. Bonds of companies with good credit ratings are considered relatively safer. A carefully chosen corporate bond fund can yield better results in the short term.
Related Stories
Entertainment
Gadgets
Gadgets
Education
Business
Business
Gadgets
India
Gadgets
Education