Or a mix the above - dozen here and a dozen there.
If the intended duration is longer than above, you’d be better off with a multi asset portfolio mix with nifty etfs, commodity etfs and debt etfs, mainly because the risk adjusted return is way way better.
I agree with @BB789. If I look at my investment journey, almost all the big losses are primarily atttributable to debt investments One the ticketsize is high as you pereceive them to be safe. These were all AA and AAA rated NCDs ilke Dewan Housing, IL&FS, SREI, Vodafone debt through Frankin funds and what not. It may sound perverse but you can actually cap your losses in trading if you closely monitor and get out. However, you can not exit those ill-liquid NCDs.
So, I’m asking now , is it safe to invest in nippon liquidbees etf, zerodha’s liquidcase etf or not?
I have another plan as well, which is diversification concerning safety, 12 lakhs each in nippon liquidbees etf, zerodha liquidcase etf, sbi liquid funds, hdfc liquid funds, icici or kotak liquid funds (totally 60 lakhs).
Boolean yes-no answer? No.
Nothing is absolutely safe, A non-zero risk associated with it.
A better question would be
Is < something > the least risky options available to me
and what are the risks involved?
@Prabhakaran_N ask yourself this -
By repeatedly asking on this forum - “is <something> safe?”
is your brain trying to crowd-source some peace of mind
for a decision that you already have in mind? (is that a prudent thing to do, since none of us take any financial liability for our opinions we share?)
If not,
and you are sincerely looking to understand the domain,
then here’s how i would go about it.
Review the posts in the topic thread,
Spend time reading them until you understand.
Follow linked references, read them.
Ask specific follow-up questions (if any) on particular comments in any posts.
Share any contrary thoughts that come to mind.
Challenge any opinions stated as facts.
and add a post with a list of risks associated with Liquid ETFs and Liquid funds.
Note: Liquid funds have a different risk profile / additional risks associated with them compared to ETFs. Hint: Already discussed earlier in this topic-thread.
Next, for each of the risks identified, list how relevant it is for your portfolio.
Ensure risk is below the acceptable threshold for your overall portfolio/finances.
Q. How do you determine what should be an acceptable level of risk for your portfolio?
Like i mentioned earlier,
IMHO, the proposal to park entire portfolio in liquid assets
with the expectation to subsequently deploy it in equity,
is unlikely to be a good idea. (as it is a relatively extreme example of trying to time the market with one’s entire portfolio)
With the following thought in mind… “15 minutes could save you 15 lakhs or more”
…can you maybe dedicate some focused time to read through the following article
especially the section - " Does your portfolio know what it is? "
and the sections after it.
Armed with the thought-processes in the article,
we can then maybe have a fruitful discussion in this topic-thread.
