I work in the private sector and want to own a house. I want to invest my money in mutual funds to buy a house costing around Rs 30 lakh. If I put the money in fixed deposits (FD), then I would earn 7-8 per cent interest. I want to earn good returns (12 per cent), so that I can book the house after six months.
Please suggest where I should invest this amount for six months so that my money is safe and I get better returns than bank FD.
- Baliram Gupta
For the short term equity and long-term debt funds should be strictly avoided, but you may invest in liquid funds But even there investments are market linked and involve a measure of risk, however small, with respect to capital safety and returns, none of which is assured.
Currently, even the returns from liquid funds have declined and they are unlikely to deliver more than bank FDs. For safety of capital and returns, you should stick to bank FDs, even if you have to settle for lower returns.
This article was originally published on April 29, 2010.
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