I am seeing a lot of posts on Reddit where people are asking to park money for 6months to 1 year. Though people are giving various advices but for me if the goal is short term that means if I have to use the money in less than 3 years then I am using the FD.
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For example, I have a vacation fund which I build for every 2 years and use that for my vacation. That vacation fund if I had put in market, it would have given me 30% in last year or so. But for this fund I am not chasing returns. I am parking it and even if I get 7 to 8%, I am ok.
And that's what I suggest for everyone. I was suggesting Debt fund, but with Debt fund the returns are taxed like FD. So now I am more inclined towards FD as I know I will get the fixed returns and not the market linked returns as per the debt fund.
And that's why if you have to park the money for less than 2 years, FD or Fixed Deposit is best. Like here too, if you need the money in short term then save it in HBD for 15% returns. Whereas if you are thinking for long term then save it in the form of Hive Power. HBD in savings is just like a FD where we will get 15% returns and thus it compounds every month.
And similarly for emergency fund too, my 40% of the fund is in FD because I can withdraw it in less than a minute. And that's why I have a lot of fd in different different account. Also I don't wait for a fixed amount, even if I have say Rs 10K in a month after my investment, then I save it in FD if it is for the short term otherwise I invest in the market through ETF ki dukan.
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