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).