Liquid bee or fd

if I can save 25000 per month to invest in markets whenever the market dips more than 30% from high, then in which form should I save money? I mean liquid bee or fd because I don’t know when will the market fall in the next 3 months or the next 3 yrs.

Personal Finance By Varsity

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Hi hiren,

FD return is one of the lowest dont ever put in FD .

liquid bees is ok if you can manage fractional units. Best of the liquid fund is bharat bonds .

if you are so sure that market will fall 30% why dont you try SGB , coz when market falls automatically gold will increase in similar proportion.

my suggestion would be
put 50% in bharat bonds and earn decent return of 6.5 -9%
and put 10-20% in SGB earn 2.5% return plus gold returns
and put 30% in liqud bees if you are sure / bharat bonds if you like it.



hi Hiren,

you can buy from zerodha … type EBBETF you will get 4 options …

you can exit /enter just like stocks , no lock in period , but if you wait till maturity you will get tax benifit .

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its completely unrelated to market , these are started by GOI , they invest in PSU’s and give us fixed interest.

check here for more details


This are not linked to market, but are definitely linked to interest rates, especially the longer duration ones (maturing in 2030 & 2031). If RBI raises interest rates (which looks very likely), prices of these can fall and there is a chance of small capital loss or sub par return.
Bear this in mind before investing.

so I should invest in SGB or gold bee, and if SGB then how? because I see many contracts in name of SGB.

SGB is basially two part return one is absolute i.e 2.5% interest on issue price + Part 2 is relative returns of gold price difference from the day you purchase .

let see part 2: you can buy any bond since its relative your return will be same.

But in part 1 : you need to find the SGB which is issued at highest price till date , in my research i found SGB aug V series 2020-2021 is issued @5334 which is highest till date ( please do your research as well )

so I took SGB aug series and earning 2.5% @5334 even though gold is trading at 4750 now, thats a good part .

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so if today I enter @4755 then I will have to hold it till 2028 or can exit early or even can hold it more than 2028. as this will be for 15-20yr investment.

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you can hold till 2028 , yes you can exit anytime before .

I dont think so you can hold longer … it is similar to any other bonds once date is over they will stop paying the interest rate and bond will mature.

Rise in interest rates should give a higher yield for all debt instruments. Is my understanding wrong?

This is true only for new debt instruments issued after the rise, not existing ones. In simple terms, if you have already invested in debt instrument with interest rate of 6% and then interest rises to say 7%, you will still continue to get only 6% on your investment.
But a new investor can invest at 7%. Effectively, bond which you are holding becomes unattractive and its price will drop, resulting in capital loss.

This is very simple explanation. If you want to go in details, suggest to read it in varsity.

You can exit early in two ways:

  1. Sell it on market anytime you want. But liquidity in these SGBs are not very great, so you may or may not get the expected price when you sell at market
  2. Govt gives option to do early redemption after 5 years. So you can exit at 6th or 7th year at prevailing gold price

The series which you are buying mature in 2028 and you will be paid back amount based on gold price. So you can’t hold it beyond 2028. But you can take the maturity amount and invest in new SGB series for another 8 years (assuming govt will continue SGB for long term) or buy Gold ETF / physical gold based on need.

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@Akash_Shah though answer is correct , small correction in the explanation…

In the event of RBI / Banks increase in the interest rates , most investors move out of stock market and deposit in the banks to get stable income. following the same since bonds yield would be 6.5-7.5 , any interest rate above 8 will attract most of the liquid fund managers/investors to move to banks rather than investing in Barat bonds.

since bharat bonds is a tradable on stock market , based on demand and supply value would be in decreasing … of course all depends on the how much percentage points banks rise .

As far as i can see next 6 - 8 months interest rates would be stagnant or max upward movement of 0.5%. even then still a better bet than FD and liquid bees ,coz with FD you need to pay TDS also you cannot use it as collateral for options trading and liquid bees you will get fractional units .

I stated a simple fact that if interest rate rises price of long term bond ETFs like bharat bond falls.

Whether “interest rate will rise 0.5% or 1%, money will move from stocks to bonds, liquid fund will move to fd, intrest will rise for 6 months and then stagnate” that are all assumptions which investors need to make more himself and take decisions accordingly.

Remember, assumptions don’t change the facts.

If I want to invest 10000 rs each month in gold bees or junior bees then which way will be best.

  1. signal shot investment on 1 fixed date of each month
  2. every day 500rs investment to get better avg in markets

Will the cost of entry remains smae in both ways or it will be different.