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Article: A safe bet ; Short-term debt funds have emerged as an attractive investment option for investors.
- Article from:
- Business Today
- Article date:
- June 28, 2009
- Author:
CopyrightCopyright 2009 Business Today. Provided by ProQuest LLC. (Hide copyright information)
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With the stock market having run up 82 per cent since March,
investing in stocks over the short term is fraught with risk due to
the possibility of an imminent correction. When this fact is
juxtaposed with the prospects of a flattish interest rate over at
least six months, a clear case builds up in favour of short-term
debt funds. Here's why: While interest rates are expected to remain
volatile for sometime, fund managers believe there won't be any
significant movement in any one direction at least over the short
term.
This makes it safer to invest in shortterm debt instruments such
as liquid plus funds, floaters and short-term debt funds, which
according to fund managers are less ...