Safety Mutual Funds are for You..!
Prashant
Mahesh, ET
Stretched
valuations with no earnings recovery have led to a sharp correction in stock
markets over the past six days, with the Nifty losing close to 400 points.
Amidst
geopolitical tensions and fast-depreciating rupee, several mutual fund
investors are not sure whether they should invest now or wait for the markets
to stabilise. In such a situation, wealth managers advise investors to put
their money in a mix of arbitrage, liquid ultra short-term funds, which are
low-risk products and enjoy easy liquidity.
Investors
could earn anything between 6% and 7% in such products.
“This also gives them the option to switch and
average their equity-oriented funds as and when valuations get reasonable,“
says Rupesh Bhansali, head (distribution), GEPL Capital.
Those with some risk
appetite could look at investing a lumpsum amount in equity savings funds,
which invest only a small portion of 20 to 40% in equities, with a 3 year time
frame.
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