BOND FUNDS NAV HAVE CRASHED! WHERE TO INVEST NOW?

India
July 19, 2013 9:07am CST
The Lay Investor will be shell shocked for sure. First his favorite, “Can never fall” Gold fell by 15% and next his “Can never ever fall” Bond/Liquid Funds Fell by a massive 4% in a single day. His definition of “safe” investment would have gone for a toss.! Where should an Low risk appetite investor with a 3 year horizon invest in?
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1 response
• New Delhi, India
18 Sep 15
In my opinion, a low-risk appetite investor with 3 years horizon should invest in a good debt-oriented hybrid fund during this period of uncertainty. It can be safely presumed that a debt-oriented hybrid fund will give a return of 10% p.a. (CAGR). However, I recommend SIP investment in a multi-cap equity fund or in a good equity-oriented hybrid fund for at least three years to neutralize volatility and for a better return.