You should buy the stocks of the companies whose earnings are growing and who do not have much debt in their balance-sheet. These stocks are expensive during bull markets.
History tells us that corrections occur every couple of years, when the stock market decline 10% or more and bear market occurs every six years when the stock market decline 20% or more.
These corrections and bear markets are huge opportunities for intelligent investors. In these corrections and bear markets, you should buy stocks that have less debt and that are generating good earnings, year after year. These stocks were expensive during bull markets, but now in bear market, you can buy these stocks at bargain prices.
Umang , Agreed FMP do not have a guaranteed return but indicative yield is declared by AMC s once the issue is open. One can also check on the credit rating of the portfolio. Mostly FMPs consist of Certificate of Deposits & Commercial Papers . The only issue is Liquidity but I am sure its worth a wait for an extra return & better tax adjusted return . FMP 1 year now offer 9.8% FYI
This is a little misleading table. FMP dont have a guaranteed return unlike FD also FD can be withdrawan at will. Dynamic bond funds etc have a risk of downside. Liquid funds at time trail FD in return in some instances and they are often better for corporate not individuals.
Apart from FD is there any debt option which do not have lock in periods. FDs can be broken at will by paying a penalty. Are the other options mentioned in the article like that?
Re: Is there any debt option which are as liquid as FD?
by F F on Feb 23, 2012 12:42 PM
Go for liquid funds or short term funds...If you invest in long term open debt funds, the max exit load is 1% for 1 year after which it has no load.Good Debt funds always have better yields than FDs.
Re: Re: Is there any debt option which are as liquid as FD?
by vinodh kumar on Feb 23, 2012 03:05 PM
Can I park my emergency funds in liquid funds or FDs? Also FDs are insured upto 1 lakh per bank. Is there any for liquid funds?
Re: Re: Re: Is there any debt option which are as liquid as FD?
by manish bhatnagar on Feb 26, 2012 08:56 PM
yes you may park your emergency funds in liquid funds, you may go with Reliance Money Manager Fund, having a facility to draw your money by cash also from any ATM. Please choose option of dividen reinvestment. It will not attract any income tax. Regards Manish Bhatnagar 09417088123
