Is it opportune to invest in bank fixed deposits (FDs) as stock market bleeds for sixth day in a row?
Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here It is an excellent time for retail investors to lock in the FD rates for 3-5 years, suggested Gupta. Recently, some banks have also started floating rate FDs.
As per Anshul Gupta, investors should avoid that since the rates are about to peak. The market expects RBI to start reducing the key interest rates in the next calendar year. The stock market continued its downward trend as it opened flat in the red today, further extending the ongoing bearish sentiment.
The Sensex witnessed a significant drop of 481.30 points, opening at 63564.74, while the Nifty was down by 156.45 points, opening at 18964.75. The 30-stock index has been under-sell of heat for the last six days. “Long-term investors do not need to do much and the only thing they can do is to add on in dip and stay with quality.
The market may look reasonable in terms of the valuation if it corrects 300-400 points more from here and geo-political risk stablises although no one can predict the top or bottom in the short term," said Mukesh Kochar, National Head of Wealth at AUM Capital. According to the recent Mutual Funds Report by Motilal Oswal Financial Servicesbank FD is emerging to be a stronger product than longer-duration debt mutual fund schemes. “On the debt side, the momentum remains weak as large institutional investors are waiting on the sidelines given the geopolitical tensions across the world.
FD is emerging to be a stronger product vs. longer-duration MF schemes. However, demand remains strong for the shorter duration (< 1 year) schemes," the report said.
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