What to do with spare money?

Need this info for a relative.

Market is at the peak and he does not want to put the surplus cash in the market at this level.
FD rates are pathetic.

Are Debt funds an option? What about the issues like the recent Franklin Templeton episodes?
Are Debt Funds better than FD’s ? Even if your investment horizon is less than 3 years (indexation benefit)?

Wondering how others are managing this situation in similar situations.

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Do check index and gold combo…

I think they will produce a decent interest even if anything happen.

70 percent in index ETF and 30 percent good ETF may balance your fund even if the market fall tomorrows because both are inversely proportional.

Check the previous performance of it in the charts and analyse in worst situations like 20 Corona fall you will get clear picture…

Note: please check with your finical advisor before taking any decision

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I am not an expert at all. So take whatever I write with a Kilo of salt. I am an investor.

When you say Market is at a Peak - This is true, but then you should be aware at what level are you planning to enter. If you decide I will invest in HDFC at 1300 then it is fine. But if you just think market is at a peak and not have a relative second strategy as to at what point you are willing to invest, then you will be waiting on the side lines. (example nifty is at 15800, you should have a strategy that you will enter the market at 15,000 or 15,500 or whatever you are comfortable. However if your intention is to enter at 14,000 then it woul de a long long wait - but no one can predict)

Not sure if you are willing to invest directly in stocks or wish to go by the Mutual Fund level.

Look at the top notch stocks and see where they stand. Maybe the Nifty is at its peak of 15810 but there could be good company such as HDFC (housing company) - it is at CMV 2481 whilst its 52 week high was 2896. If you like this sector, keep a target level in which you will enter.

Similarly there are other individual stocks which you could find out.

If you are inclined to invest your surplus cash eventually in a Mutual Fund, I think you are wasting time by waiting, do start with a small investment instead of waiting.

I fully agree with @Laxman_lucky ETF is a good option, have no clue about Gold though. If you have decided to go through this route, just invest in ETF though sip way or invest daily. I consider ETF has full fledged investment product and not a stop gap product to hold surplus cash.

Also do understand the tax implication in any of the product you decide to chose if your intention is to park your surplus cash.

Disclaimer - I am invested in HDFC and ETF. Again, do not take any advise on face value, do your own research.

Savings or investment is undoubtedly the best option in this regard. Debt funds can certainly be an option. You can also go for a systematic investment planning where you can regularly invest small pre-fixed amounts for a good rate of return.