Published On : Fri, Oct 16th, 2020

Not the time for long-term fixed deposits

While it is difficult to predict the trajectory of stock prices, equity funds or gold, one thing is certain: Interest rates will remain low in the near future.

The repo rate has declined from 6.25 per cent in February 2019 to 4 per cent (since May).

Returns offered by liquid funds and other short-term investments have fallen in tandem.

Liquid funds have given average returns of 4.4 per cent over the past year.

Traditionally, conservative investors have parked their short-term money in fixed deposits (FDs).