Stick to FDs if you need the money in less than five years and you're looking for assured returns
I have a few fixed deposits. I recently moved money from one of my FD to an equity mutual fund. I want to know whether I should I keep the rest money in FDs or should I move the money to mutual funds. What is the optimal percentage that I can invest from FD to mutual funds? Which mutual funds should I invest?
- Dinesh Lal
You should continue to keep the money in FDs if you need the money in less than five years and looking for assured returns. You can also look at debt mutual funds for this purpose. However, if you have more than five years in hand and your can afford to take the extra risk of investing in stocks, you should invest in equity mutual funds. If you are new to the stock market, start with a low-risk balanced scheme like ICICI Prudential Balanced Advantage Fund.