Can someone explain the below in “easy-to-understand” language for a new investor? I am looking to invest around Rs1.5 lacs for 12 months period. Was wondering about other avenues than FDs and stumbled upon the following link, but could not understand this. I’ll be glad if you folks can help me out.
Url – http://www.thehindubusinessline.com/features/investment-world/mutual-funds/article3412568.ece
“What kind of funds should individuals invest in to manage better-than-FD returns, going forward?
It will depend on the investor’s risk appetite. If the investor is looking for a direct substitute for fixed deposits, then he should look at a slightly stable product such as short-term income funds.
If you have a high risk appetite, consider funds such as income funds, which manage their debt portfolios actively.”
Edit – I fall under 20% tax bracket.