Where to invest in these troubled times?
Equity - Too risky and unstable in the current scenario. But if you are prudent, you can wait and watch, and buy good scrips with long term potential/holding. But do not indulge in short term trading.
Debt Instruments - Considering that the interest rates are rising and expected to rise further, it is worth parking some money in one year debt instruments like Fixed Deposits with Banks.
Mutual Funds - Strict no on generic MFs. You may try sector specific Mutual Funds that have good prospects. Lay off infrastructure based MFs. I am worried about Infrastructure sector, due to the policy paralysis. Land based, precious metals based MFs can be considered.
Gold - I wish I am wrong, but I get a bad feeling about investing in Gold now. I have always been a proponent of Gold as an investment, but I feel the current prices are on the higher side and unsustainable in the medium term. Wait for the prices to fall, and then invest, but with a caveat - never invest in Gold Ornaments, but invest in Gold Bars, coins or Gold Stocks.
Land - This is the ideal investment as of now. Invest in small pieces of land that you can sell easily. Look for lands in Tier B and C cities or outskirts. Avoid buy large tracts of land as this would affect your liquidity.
Buildings - Strict no.
