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I am planning my marriage one year from now. For the same, I plan to save a fixed amount every month. Rather than keeping the amount in my savings bank account, I would like to invest it in 'risk-free' debt investments for a period of one year. Which is the best bet as of now?
-Raj Abhishek
For an investment aimed at a short time span of one year, you should consider a bank recurring deposit. It is also preferable as you want your investment to be risk-free. One can expect similar returns from a recurring deposit and a short-term debt fund, but the former would give safety of capital along with guaranteed returns (interest) while the latter carries no such guarantee.
This article was originally published on February 12, 2009.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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