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

[@shankarnath]

👉 Start here with KlarifyLife's TERM GUIDE: www.klarifylife.com/term-guide/start-your-term-guide-journey?

[@Piegon234]

Nice Video, how about parking in P2P lending platform . Which they offer 12 to 14% returns for 12 months

[@ashishasati]

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

[@shankarnath]

So nice of you. You're most welcome 🤗

[@gautamsarin]

Thanks

[@shankarnath]

Thank you Gautam for your kind appreciation and for this gratuity 🙌

[@alokchauhan13]

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

[@shankarnath]

Glad to hear that!

[@vaibhavrana]

Exactly the info that we needed right now!

[@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?

[@manish007142]

Today I learnt about Equity savings fund as a mutual category. Thank you for the video 👏👏

[@shankarnath]

Most welcome!

[@RadhikaSharma-rj7bc]

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

[@shankarnath]

Awesome, thank you! 🙌

[@mayanktiwari2498]

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

[@shankarnath]

Thank you 🙌

[@pawan2621]

Hello Shankar - this is a good video. I was looking for parking funds for short term and was clear to not do the FD (due to tds complications at the year end - accrual basis tax) and at the same time was looking for something less risky - I felt out of all the options - for less than 1 year need, I will do arbitrage funds and for 1-3 years i will do equity savings funds. they are both better at taxation and the risk is primarily very bearable.

[@shankarnath]

Glad you found it useful

[@karthikeyanv463]

Thanks for another useful presentation Shankar ❤

[@shankarnath]

My pleasure! 🙌

[@ajayverma1155]

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

[@shankarnath]

Most welcome Ajay ji, glad you liked it 😊

[@rsv1503]

Shankar, You don't believe, past few months I repeatedly watched your debt 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.

[@shankarnath]

Most welcome. I'm glad you're finding my work useful

[@ashutoshlenka3715]

Awesome video

[@shankarnath]

Thanks!

[@qatest-tt6vu]

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

[@abdulkhadir3401]

I used to park in Invits particularly during high interest rate environment, as their valuations are cheap at period and the funds can be deployed back into the market when there are rate cuts as market will rally because of more liquidity.

[@raghav4608]

Thanks for the very informative video Shankar ji. Can you please do a deep dive into doing STP the optimum way.

[@shankarnath]

Most welcome and thanks for the suggestion. I'll add STP to the content queue

[@vijayakumarrajuchamarthi2346]

Thanks Shankarnath sir for valuable information. Looking forward for your news letters

[@shankarnath]

So nice of you. The newsletters will restart once I have a better hold of my schedules, thx for your patience

[@jammi25]

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

[@shankarnath]

My pleasure. Glad you like them! 🙌

[@sanjaykirushnan9601]

Thanks Shankar very helpful. Can you do a video on taxation on profits among different assets classes and investments.

[@shankarnath]

Thanks for the suggestion

[@eleswararaomylangam2806]

Thanks a lot Shankar vry clear and detailed iformation.

[@shankarnath]

You're most welcome 🙌

[@AzadShaik]

An apt video for the current situation

[@pkprprempavankumar8749]

Thanks for one more brainstorming informative and creative video ji.

[@shankarnath]

It's my pleasure 🙌

[@santoshkumarch4583]

Forever and always ❤ highly impressed

[@shankarnath]

Thank you very much 🙌

[@rachananayak8779]

Thanks ❤❤❤

[@shankarnath]

You're welcome

[@nilanjanbiswas7104]

Great video

[@shankarnath]

Thanks!

[@vivekvardhan5689]

Great analysis… lage raho bhai Saab doing good job

[@harithv758]

Thanks for the video Shankar. Ideal time to know these concepts! I've a question clarification. How do you do your STPs? Do you withdraw from your exiting MF and then again do a lumpsum to the new MF every month or is there a platform that does it automatically for you? I use ET Money for all my MFs and I can't see the STP option anywhere. Also while doing STP, do you pay the capital gain tax even when you redeploy the capital immediately into a new fund?

[@shankarnath]

Most welcome. 1. It's done automatically & I use the AMC website to effect this 2. Platforms incl. ET Money might not have built this feature as it's a minor use-case (SIP being the more prevalent one). Try myCAMS - they might have it 3. Yes, capital gain tax is payable .. which is why I am moving from using debt funds to using equity savings funds/arbitrage funds to effect the STP

[@jamalahmedaad]

Very useful video. Thanks

[@shankarnath]

Glad it was helpful!

[@nitingaoshinde7737]

Shankar sir , very nice video ❤ I am following you from et money and learn lot from you.

[@shankarnath]

Thank you for your kind support 🙌

[@nabeelyahiya]

Excellent video❤

[@shankarnath]

Thank you! 🙌

[@snehilkamal1919]

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

[@shankarnath]

It's my pleasure. Thanks!

[@Arun-stock-Trader]

Equity saving fund is best for Parking Money... When you also know to track the market

[@sahilgulati6995]

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.

[@shankarnath]

Thanks

[@dhruvdhaka5108]

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?

[@shankarnath]

Pls watch my video on GOLD for a better understanding of performance, volatility, drawdowns etc. That'll answer all your questions here

[@szsouvikzs]

I have a query regarding mutual fund. Being a corporate employee I am investing in ELSS fund. Alongside I am investing in a Mid Cap and Small Cap MF separately. Now, I would like to invest more amount. Shall I increase my investment in my ongoing SIPs or invest in a new MF? If yes, shall I go for Flexi Cap fund or something else, where MF overlap is minimal. Thank you.

[@zenithease]

Sometimes over diversifying can lead to unexpected returns. Fix a target CAGR for your total MF portfolio. And if your current holdings are able to get that return than just increase the SIP. Or else you can opt for other MFs. And yes checking if the stocks are not overlapping is an important one.

[@hanumantrao3352]

Again, quite simple! Thanks sir. //Hanu

[@shankarnath]

Most welcome!

[@theequityinvestor]

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?

[@shankarnath]

Thanks .. 1. Pls try Tijori finance (platform) 2. You can check large trades on screener.in

[@theequityinvestor]

@@shankarnath wonderful. Unbelievable... Thanks a ton. I have searched several times in Google regarding market share but didn't find what i was looking for because of the searching keyword... Thanks again. ❤ 🙏

[@gunaraj6947]

Perfect time, to the point

[@win289]

Great video

[@shankarnath]

Thanks!

[@Amandeepsinghjaura10]

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

[@shankarnath]

Haha. .. thank you 🙌

[@vijetarvindpatil7579]

Thank You!

[@shankarnath]

You're very welcome! 🙌

[@FifthArima]

quality content!

[@shankarnath]

Thanks

[@hsdrdeath055]

Great content. But can you also do more of industry analysis.

[@shankarnath]

Pls watch sector analysis here: kzbin.info/www/bejne/d4mZc3ebmNOqiLM .. I've covered 12 industries so far

[@Akash-iu6ik]

can you make a video on how to buy corporate bond from secondary market and what to look for when buying

[@shankarnath]

I have something relatable at kzbin.info/www/bejne/pme6m4Khnadkmrs

[@udyogimi]

How STP works ? Automatically or you are asking to do it manually like withdraw from saving and put in pure equity ?

[@ShafiqueM]

STP works automatically

[@udyogimi]

@@ShafiqueM oh interesting . Need to explore this one . Not aware about this

[@shilpiburman7102]

Hi Shankar. Thanks for another gem of a video. Had a query regarding term insurance. If I were to get myself a term insurance (in my late 40s) of about 2-3 crores what should be my considerations for selection, duration of cover and payment terms? The premium at this age is obviously high, so wondering how best to cover risk.

[@shankarnath]

Thank you Shilpi. I'm in Bangalore day-after & a podcast is being arranged with Shrehith, the CEO/founder of Ditto Insurance. If we have time, I'll pose this question to him. In my opinion, your term insurance coverage should not some adhoc value but the balance between your comforting retirement corpus and your present networth. For example - 8 crores is what many people I've spoken to need to retire around the 55 year mark. Let's say you're networth is already 7 crores -- then you really don't need more than 1 crore. However if you have accumulated a lot lower, say 3 crores .. then depending on factors like premium you should decide the coverage The second consideration is the tenure (duration) and similar to the above, go for the age by when you think you'll have reached your retirement corpus. So if that age is 60 years .. then keep the tenure to 15 years (assuming you are 47 right now). This again ensures your family has the necessary protection and you aren't overpaying on the premiums Thirdly, with re: payment terms -- I am biased towards "regular pay" i.e. pay monthly or annually. Like in my case, I have my term plans extending upto 70 years but I plan to stop paying premium once I've reached my financial freedom number. Going for "limited pay" would have not given me that option. Hope this helps.

[@shilpiburman7102]

@@shankarnath Thank you for this message Shankar - your detailed response to my query on term insurance has set me off thinking about my retirement goals and expected retirement age. Would be grateful if you manage to squeeze in time for this query when speaking to Shrehith. Looking forward to the podcast now :)

[@shankarnath]

@@shilpiburman7102 Sure, will do

[@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.

[@shankarnath]

Thanks for the suggestions. Kindly examine the performance of arbitrage and equity savings funds on platforms like valueresearchonline.com .. do note, different schemes have different strategies

[@finvestor-v6m]

I thought that the Fed rate cut will make the market rally. May be to some extent the rate cut is already priced in. But banks and NBFCs are likely to rally. Also those businesses which are having tough time borrowing, will borrow after the rate cut. Isn't it? Thats what I think, but may be I am wrong.

[@ishaheen916]

T Bill is a better short term investment than FD

[@nitheeshp.s2532]

How the tax will be calculated can u give me some examples with amount pls

[@shankarnath]

Tax depends on product to product. It also depends on the tax slab of the individual and also the amount (interest or capital gain). This can be a little complicated to explain on a generic level, may I request you to connect with a tax advisor for this. One resource you can watch is this one: kzbin.info/www/bejne/nmSVhZuDiK-nbpI .. hope this helps.

[@sagek7949]

Thanks a lot ! With your advice, I switched my MF to debt funds. Please can you explain why people say we must never touch MF during uncertain times because we lose the compounding benefit.

[@shankarnath]

Most welcome. I think what people mean is that --- don't redeem your MF units just because the stock market is volatile. This is said to ensure you're not taking decisions based on fear. Your investing decisions should be based on logic. Fear is not logical and neither is transient euphoria

[@sagek7949]

Thank you 😊

[@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?

[@bharatvarsha7]

i always wait for your video

[@shankarnath]

Thanks 🙏

[@nikhilabhyankar8031]

@1:55 NHAI, PFC etc are not FD's but bonds.

[@MrAvinash5]

Recently i parked 30% of my funds in hdfc balanced and in quant abosolute fund then stp to small or midcap

[@satvik6143]

Sir what about ppf?

[@shankarnath]

PPF is not an instrument where money is parked for the short-term

[@kaushik3995]

​@@shankarnathYes Sir, PPF is a Long-term product. But after 15 years lock-in is over, money can be withdrawn. Moreover it's tax-free. Only issue is Liquidity which is slightly better with the changes made.

[@shankarnath]

@@kaushik3995 Thx for your views. Do let me know your experience of using PPF for parking money for the short-term

[@dheerajbhagwan6098]

Sir regarding aster dm health care it is being punished so much by the market

[@prathisahrudh]

Unity bank has the best high interest paying savings account i.e 6% upto 1 lac

[@shankarnath]

Thanks for sharing

[@NarasimhaDev108]

PLEASE MAKE A VIDEO ON COMPARISON RISK REWARD RATIO comdifferent BAF/DAAFs

[@shankarnath]

Thanks for the suggestion

[@smart3883]

hope you watched parking movie, again awesome presentation :)

[@shankarnath]

I didn't like it much the 1st time. I guess it was a case of over-promise

[@RajeshKapoor-n8u]

Shankar please give me a go ahead to put 25% of my retirement corpus into sbi bank annuity for 7 years which allows me higher assured cash flow as it involves principal back like loan emis. 75% then cud be deployed into BAFs for SWP’s after annuities are exhausted. At 65, I feel this way I move with the inflation and leave better legacy behind…awaiting yours

[@shankarnath]

1. Sir, pls never ask/take personalized advice from a social media channel. Even in this case, one doesn't know if this is Shankar who is responding to the comments or someone else from the team. May I request you to kindly consult a fee-only financial planner who can understand your requirements in depth & advice a plan of action. 2. On a generic basis, BAFs have been beating inflation consistently on a 5-year rolling basis. You might want to understand every BAF individually because each of them use a different valuations model (e.g. I've found ICICI Pru BAF more conservative than the others which isn't a bad thing)

[@JaiMataDi-j3d]

Is there age limits for nps schemes? Can American citizen resident of India invest in NPS scheme?

[@shankarnath]

Kindly watch my videos on NPS for more details 1. kzbin.info/www/bejne/hoLXZ2SGms58Z5I 2. kzbin.info/www/bejne/eqbIg2xjpJx1fck

[@kamathsonline]

It would be extremely useful if you could plot these investment options on a similar chart you showed in the Debt section like time, risk, interest etc. If you could add it to the comments or the description, it will be great

[@dedhiapiyush]

Thanks Shankar. Very informative. If duration is 1 year plus, Gold plus Nifty50 ETFs in 50-50 proportion is also a good option. But yes, it's volatile than any of the methods you described.

[@shankarnath]

Welcome. I've haven't analysed this combo but given the tax factor, I'll be more keen on an instrument with 65%+ in equity. Ofcourse, the combo's heightened risk has to be kept into account. It's not advisable in the context of this topic.

[@madhurimadhuri3673]

Need to know if Balance advantage fund is good for retirement SWP. Also if not let me know which fund is suitable for 60 year old and whose 50% portfolio is in Equity stocks.

[@CoolDeepSingh]

You are giving so many options. Whats your personaly favourite?

[@shankarnath]

Depending on the circumstances, my favourites change. For instance, if I need money in the next 1 month - I prefer the bank savings account. For SWP, I like equity savings fund. With interest rates likely to come down, I like long duration debt MFs.

[@sumantbagade4903]

What is Equity Savings Fund? Is it a type of Mutual Fund?

[@sarvan55]

BAF as short term fund is a big NO. Even they were not spared in covid crash all BAFs fell between 16% to 34%. For short term FD/Liquid/Money Market funds is more than enough.No need to complicate by involving equity.

[@track0123456789]

Tbill lessthan 1yr. conservative hybrid 1-2yrs. Liquid - emergency money. FD liquidated, would lead to no interest loss.

[@balajireddy7396]

My humble opinion. Even if you are a risk taker, not everypenny should be put in equity even if it's long term. Many ppl say , longterm means equity which is right only on paper but it's most impractical/unnecessary. Min 30-40% of ur asset should be kept in stable,less volatile instruments like Conservative hybrid funds , Arbitrage funds even for long-term like 10+ years. Remaining amount as per ur risk taking ability. Such setup helps ppl emotionally during bear market and prevents them from redeeming ter funds. Asset Allocation is everything. You should contract your portfolio factoring 2-3 years continous bear market. Somewhere I read an interesting quote. "You make money either by taking huge risk on small amount of money or take small risk on huge amount of money" The above quote will make sense if ur portfolio size is over 1Cr.

[@sohamsaha7812]

This is a serious channel. Pl try to keep it that way .

[@nakulchaudhry2783]

Atleast 80 Lakh to 1 CR should be in FD in Tier 1 cities. Maybe put a chunk of the interest in SIP of a Flexicap or just let it be. The rest investments should start after you have that one safety FD.

[@dewprakash]

thank you Shankarji for this informative video. I had started using Arbitrage fund for short term parking but did know much about Equity Savings MF. It was very helpful. I have question, do you think debt oriented growth MF can be an alternative to Equity Savings MF for parking money and STP?

[@drsherlock3145]

I was just thinking about options to keep emergency fund and randomly got this video suggestion.

[@rajeevroy4383]

A finfluencer recently suggested parking of lumpsum money in an active hybrid fund and do swp amounting to 0.5 % of capital to invest in a growth fudin an equity fund .This will ensue perpetual investment for generations . Slightly off track question but interesting. Please comment

[@shankarnath]

Truly interesting

[@Dushyantgiri]

One thing not covered is gold etfs ( this vould have given good option but taxed differently but they are not better compared to fd in long term if you dont consider current bull run and well timed entry for gold.) , This are the funds i explored except equity saving funds, i found arbitrage funds as good for long term vs fds post taxation,

[@roop]

Please include FD options from Small Finance Banks which are giving FD rates of 9+ percentage for Senior Citizens and more than 8.5 percent for non Seniors. These FDs also have DICGC insurance upto 5 lakhs.

[@anuragsrivastava730]

A Treasury fund is another good option to park for 3 to 6 months, predictable, secure and upfront return.

[@lokesh009garg]

Sir interest rate from bank fixed deposit is not covered under 80TTA, it covers only the savings bank interest.

[@zalap.1244]

25-33% May Be In ITBEES OR IT BASED ETF.....

[@DanielSamuel007]

❤

[@lionellawrence5798]

Does Shankar Nath speak tamil 😭

[@pradeep2kedar]

How does it matter ? If u are not understanding what is said, let me know. I can translate in Tamil ❤

[@nohandleava]

First

[@yashwani612]

Park your emergency money in baroda bank advantage home loan overdraft savings account

[@chintan2025]

Goldbees

[@yashagar4443]

Respectfully disagree sir uncertain times are the best days to accumulate equity

[@sanjivgupta2953]

Don't miss Bharat Bonds ETFs

[@CoolDeepSingh]

Why bharat bond?

[@Dushyantgiri]

Nope not right stratrgy bharat bon before 2019 vheck qhat was the volatility..

[@prabhasghosh]

Pretty shocking P2P investment doesn't figure in this list😮

[@nikhil.dhawan]

Thats not risk free that’s why

[@ha123461]

P2p has higher risk than stock market, ur giving loan to ppl who don't get loan approval from bank

[@prabhasghosh]

That's a misconception arife amongst the investor class in general.. P2P lending has been demonised like what stock mkts were treated like in the 90s.. it's only where banks don't get to earn a dime as they are weeded out like middlemen

[@sudheerk67]

NPS tier 2 is rhe best if you can put in few hours of work once in 3months. Best tax accretive option that can generate alpha over FDs and Bonds.