Short term bond fund (Canara Rebeco) or FMP

POSTED BY Bharma ON April 7, 2011 5:26 pm ONE COMMENT

Pros for short term fund: Liquidity after a few days or months (depending on the fund)

Cons: Lesser rate perhaps than FMP.

What I don’t know if the rate of return for the next 1 year is expected to be around FMP rates or not (9%). Have the interest rates stablized for now are they going to go up (and therefore the short term will come down)

One reply on this article “Short term bond fund (Canara Rebeco) or FMP”

  1. ashal jauhari says:

    Dear Bharma, Instead of chasing return, just think for what goal you want to invest in. Short Term bond funds ‘ll always yield less than FMP due to their open end structure.

    Thanks

    Ashal

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