Knowing your options

Where the market is unstable, identifying the optimal place for your short-term money is not an easy task. Short-term fixed deposits (FDs) and liquid mutual funds are two of the most popular alternatives, with their respective advantages. Short-term FDs offer guaranteed returns and safety, but liquid mutual funds offer flexibility as well as better returns, though with a market-related risk. Knowing how each operates is the key to making an informed decision.

The appeal of short-term FDs

Short-term FDs are ideal for conservative investors who want security more than high returns. You deposit a sum and for a fixed term to get interest secured by the bank. That way, FDs are a secure option in times of uncertainty as your money and interest are guaranteed regardless of

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