Hi Sreekanth!
Thanks for all your previous guidance. Need some more....
Beside investing in SIP as per your advise, I regularly invest through Bank RD for safe investment which is the emergency fund.
Recently due to slashing of interest rates by bank, I am confused whether I should open fresh bank RDs or invest in MIP?
The idea of investing is to create an emergency fund, so my investment has to be safe. Please suggest!
If I should go for MIP kindly suggest some good funds.
Also suggest are FDs in Bajaj Finserv better than bank FDs? Bajaj Finserv offer better rates.
Regards
D Sharma
4 Answers
Dear Mr Sharma,
Let's not chase for returns if the objective is to save for an emergency fund. Here, the priority should be 'safety of capital', as quoted by you.
Company FDs, do come with 'default risk'. You may put some amount in highly rated FD Schemes.
Kindly read:
https://www.relakhs.com/best-company-fixed-deposits-fd-schemes/
If your are in a highest tax slab, may be you can have a look at Arbitrage funds.
Read:
https://www.relakhs.com/best-arbitrage-funds-returns/
Dear Sreekanth
Thanks for your reply.
Arbitrage fund seems a nice option. I have gone through your article. Kindly suggest few good Arbitrage funds for investing in the month of April 2017.
Can you give me some idea for DSPBR Money Manager fund as well.
Regards
D Sharma
Hi,
You may consider any of the Arbitrage funds offered by ICICI / Kotak / IDBI AMCs.
DSP Money manager fund is an Ultra short term fund. There are better funds than this one in this category.
Read:
https://www.relakhs.com/debt-funds-types-benefits-risk-vs-return/
https://www.relakhs.com/best-debt-mutual-funds-india-top-debt-funds/
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