So what is Debt Investment?
It's an investment option which has following characteristics:
A fixed rate of return
A fixed maturity period
Low Risk Low Return
Low to high liquidity
Some of the debt instruments are
Debt Mutual Funds
Bonds and Debentures
Government managed saving schemes (NSC, KVP, PPF)
When is the right time to invest?
Correct time to park your money in debt instruments is at the peak of the interest rate cycle. We all know inflation is beyond control and RBI is trying to tame it by employing various measures. Interest rates went up slowly since last one year as the RBI was tightening the monetary policy. But, in recent past, RBI has changed its stance and started reducing interest rates. So, we are somewhere near the peak interest rate scenario and hence investors should start planning for investment in debt instruments for better returns.
About the Author:
The author Bimlesh Singh is a financial advisor. He holds a Bachelor's degree from IIT and is a CFA Level 2 candidate. He can be reached at firstname.lastname@example.org