2. Go for mid cap stocks: Confused what to do with your money? Don’t be. Investing in mid caps can be a better option. Though Stock market is volatile, it’s believed to be highly influenced by the political developments this year. In 2013 most of the mid cap and small cap stocks suffered major loss due to down fall of value of rupee and rising interest rates. Thus, in 2014 it is advisable to go for stocks that have a strong balance sheet, low debt management, low quality management and healthy cash flow. According to the analysts, mid cap stocks is a better option than large cap and small cap stocks. Buying stocks in IT and Pharmacy sectors look more valuable this year, as reported in business Insider.

3. Fixed deposits a better option this year: Interest rates are unpredictable in 2014; and according to the analysts, investing in yields is not a good choice. The current level yields are unsustainable and are expected to recede. As the interest rates do not seem to be cut immediately thus it is advisable to invest in short term funds and lock at high rates. Nowadays, the Private Sector Units have come up with tax-free bonds that are great to invest in. For people who come in the lower tax bracket, long-term FDs and recurring deposits are a good option.

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