Invest in FDs or debt funds if you need the money in less than five years and are looking for assured returns
05-Oct-2015 •Research Desk
I have a few fixed deposits. I recently moved money from one of my FDs to an equity mutual fund. I want to know whether I should I keep the rest of the money in FDs or move it to mutual funds. What is the optimal percentage that I can invest from FDs to mutual funds? What 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 are 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 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.