Short Term Floating Rate Funds

This is an open ended scheme that strives to provide a stable income for a period of time. Unlike fixed deposits, these schemes have a floating rate of interest. Here the principal is divided between fixed rate securities and floating securities. This is a suitable investment option for risk averse investors with a short term goal.

Commodities

Commodities trading protects you against inflation. It offers high liquidity unlike investments in equities or bonds. You can buy and sell as and when it suits you. Commodities trading is done on margins, so you have to pay only a fraction of the actual price to the broker. Though commodities trading is a risky investment option, it yields high return on investment.

Bonds

A bond is a loan given by the investor to a government or corporate entity. The borrower promises the return of the principal amount at the end of a period called maturity period and a fixed rate of interest at regular intervals. It’s risk free investment option. These offer high liquidity. Investing in bonds offers you a good chance to diversify your investment profile.

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