8 LOW-RISK Short Term Investments to Park Money during Uncertain Times

► Need Term or Health Insurance?

► 26,000+ readers have joined my Investing Newsletter

"Where do I invest money for the short-term?" This is a question many of us investors have previously asked ourselves and is even more pertinent now as elections, interest rates and geopolitical instability makes the investing environment a lot more uncertain. In this video, I shall take you through 8 safe & reliable places to park your money in the short run during these unpredictable periods. This includes:
1. Bank Fixed Deposits that offer stable interest rates, the returns are guaranteed & there is good liquidity. Alternately, corporate fixed deposits offered by NBFCs & public sector undertakings and post office term deposits can also be considered
2. High-Interest Bank Savings Accounts offer high liquidity and competitive interest rates
3. Debt Mutual Funds esp. liquid, money market and ultra short duration funds can provide safety and low interest rate sensitivity
4. NPS Tier 2 Accounts provide low-cost, flexible, and liquid options for parking money in the short-term via Class G and Class C schemes
5. Arbitrage Funds exploit price differences in cash and futures markets offering relatively low-risk opportunities and equity-based taxation on returns
6. Conservative Hybrid Funds offer better returns than debt instruments due to the dash of equity (10-25%) in them
7. Equity savings Funds use their one-third allocation to equities and arbitrage to offer equity taxation on capital gains and better returns than the conservative hybrid funds
8. Balanced Advantage Funds or dynamic asset allocation funds use a mix of equity and debt investments to offer potentially higher returns at optimized risk

👉 Video Chapters:
00:00 We Live In Interesting Times
01:15 Fixed Deposits
02:42 High Interest Savings Account
03:28 Debt Mutual Funds
06:21 NPS Tier II
08:16 Arbitrage Funds
09:43 Conservative Hybrid Funds
10:37 Equity Savings Funds
11:32 Balanced Advantage Funds
13:07 Shankar's Viewpoint

#shortterminvestment #uncertainty #shortterminvesting

Disclaimer: I am not a SEBI registered investment advisor or research analyst. I am not registered with PFRDA or IRDA either. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented. Some of the links I have posted in the video, the description, the comments and other related resources might be affiliate links

[ashishasati]

Sir your hard work is showing on video, awesome thanks for valuable knowledge.

[vaibhavrana]

Exactly the info that we needed right now!

[alokchauhan]

Your videos always try to help in making decisions. Thanks for your efforts.

[niksfloyd]

Hi Shankar, so are these funds averse of market highs and lows? I mean especially dynamic asset allocation funds can we enter into these with lumpsum at any point in the market or do we wait for a crash or something?

[suprobhosantra]

Thanks Shankar for educating us. However I have few questions -
1. How does arbitrage funds behave in the bear market? Do they generate good positive /positive/ negetive returns ?
2. How does equity savings fund returns get impacted due to rate cuts?

Also I suggest you to cover a topic in your upcoming video - Timing nifty market crash. I understand timing is very difficult but this will relevant as feds will start cutting rates & yield curve invertion which suggest a recession is coming (based on historical data). Idea is to make an educated guess to reduce some part of equity holdings and keep this as opportunistic buy money. You can also cover a strategy to deploy this money during bear phases based on historical drop % and bear period time duration.

[sreerajnair]

Kudos for Another timely video. When market is over valued many people may want to just wait and watch by parking their money. Btw, what’s your opinion on what happens when too much money keeps chasing an already over valued market? When does the bubble burst? Or does it ever burst? because an enormous amount of money keeps chasing the over valued market ceaselessly.

[ajayverma]

This is one of the videos that I had been waiting for. Thanks for such a lucid presentation... 👌

[RadhikaSharma-rjbc]

Very relevant video! Very informative, well explained, great editing. Love it. Subscribed to your channel.

[rsv]

Shankar, You don't believe, past few months I repeatedly watched your debut fund videos especially experts take on debt, hybrid funds one. Those videos helped me to take decision and start investing in those funds from April'24.
I also parked some in high interest rate FDs and savings account.
Thanks for making this useful and helpful video.

[karthikeyanv]

Thanks for another useful presentation Shankar ❤

[mayanktiwari]

Good to see sponsors reaching you! And again a great video Shankar!

[sahilgulati]

Informative video NPS-Tier II was a suprise for me but thanks for the list. I find FD's better or T-bill for short term parking of money.

[dsaha]

Many thanks for your reconcile and in depth single cover details for where to park short term money (6 to 12 months)...

[dhruvdhaka]

Why wouldn’t it be a good strategy to use Gold ETFs/ Funds as a place to park opportunity funds? Given that gold tends to be less volatile than equities and often remains stable or even appreciates during equity market downturns, wouldn’t it make sense to allocate funds to gold and then shift them into equities during a market crash? Are there any flaws in this approach? Where do you suggest one should park opportunity money for optimal growth and flexibility?

[jammi]

Hi Shankar, many thanks for all the effort you're putting into these videos. They are much appreciated.

[iFrozenSkull]

This is a different question not related to short term, but What are your thoughts on investing in Mon100 ETF now that the overseas limit is stopped.

The fund will no longer create new units due to this. Would this affect this in the long run?

I am confused whether I should be continuing doing SIP on this?

[rudraroychowdhury]

Great content as always ❤.

I've 2 questions on other matter. As you are very active in replying, I thought I may dare to ask. So please reply if you think it's suitable.

Often we see on news/YT channels that some 'XYZ' company has 'XYZ'Cr. market share in India, and FIIs/DIIs are buying/selling 'XYZ' shares and so on. My questions are:

1) How/Where to find companies' (in same category) market share (not the share price) in terms of their business doing in India?
2) How/Where to find data of FII's/DII's on buying/selling shares of stocks?

[snehilkamal]

Another Great Video As Usual Shankar Sir! U really Provide Plethora of Info for retail Investors Like us..😊❤🙏

[qatest-ttvu]

Another way to park u r short term/ emergency fund in overdraft home loan account from where u can withdraw money any time & also get indirect intrest on extra money parked same as hone loan intrest without worrying about tax...banks like sbi BOB AXIS icici etc provide such facility

[Amandeepsinghjaura]

I have parked some funds in saving account and some in balance advantage funds via sip. What do you think about this ?