With the FD rates falling, in which mutual funds should I invest my money for a period of 1 year to get better returns than FD, with capital protection?
- Subhash, Haryana
Transcript: As a conservative investor your requirement can be in two aspects: one, where you put your money in fixed deposit but do not need any income from it; two, where you want to derive a regular income for your consumption. If you are looking to invest in an avenue similar to FD and depend on it as a source of your regular income, you should go for short term debt funds or fixed maturity plans with dividend options. These options will generate a regular income flow and the returns are better than fixed deposit. However, if you are looking to just invest your extra money for a period of 1 to 1.5 years, you should opt for monthly income plans. The monthly income plans are exposed to equity by 15-20% and give better returns as compared to FD and also beats inflation.