Investment School: Cash is King

Cash is King

When you take a look at the newspapers in the morning, you see more news on "DECLINE" in almost all asset classes and if not declining , they are volatile otherwise. So where can we put your money (if at all you are left with some money after being battered with losses in markets)

In these troubled times, "Cash is King" the best way to survive this downfall is just to keep accumulating your savings bank account with loads and loads of cash as and when you get them.

Reasons for being in Cash

1. The first and foremost reason to be in cash is that you have control over your money. In current scenario markets are driven by all kinds of external dependencies and is more sensitive to global economic condition.

2.Capital Protection is a must in these troubled times and one should minimize the risk of losing his/her money.


Where to park my cash

1. The best and most safe instrument is fixed deposit. Most banks offer 10+% interest on 1 year deposit. This is the safe heaven.

2.Investors with more risk appetite can go for liquid funds,FMP and other short term debt mutual funds.

Reiterating once more, "Cash is King" is the film Name and You are the real hero if you have cash right now.

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2 comments:

Maverick said...

Very well said. Although the FDs do not give you a return at par with the inflation these days, but still they keep your money safe and that is of prime importance these days.


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praveen said...

Hi Subbu,

It's Praveen from Bzeez.

Good blog. Congrats. Will go through all the posts some time later.

It's a myth one will lose money in bear market. One should handle both bull and bear market. Else it will be difficult.

I'm not undervaluing fundamental analysis. Just that I want to make you aware there are many tools and strategies available out there.

You can try Options - a derivative product. Also join at www.traderji.com - the best online forum in Indian town. You will definitely learn more and can have great time out there by involving in many discussions.

Bye,
Praveen.

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