Make Appropriate Choices

Many years ago, while interacting with a doctor friend, I learnt that a lot of patients repeatedly make one request – prescribe a medicine that cures fast. However, to this, may friend said that there’s no such quick fixes. This got me thinking, that this paradigm could be a perfect analogy pertaining to investments. Just as there are no good or bad medicines, there are no good or bad funds and definitely no ‘get rich quick’ schemes. The choice of funds depends on the goals with which one is investing. If that does not fall in place, things can go awry.  While investing, first define your goals. For example, different investment funds need different goals. So, if you are investing in short-term funds, (one year or less) opt for liquid or arbitrage schemes, which will yield about six to seven per cent returns with a redemption time of 24 hours. These are also...