In an interview with Indian Express, Ganesh Mohan says the risk adjusted returns that investors could get in liquid funds or even in any kind of debt funds, could be higher than savings accounts of banks. Excerpts:
Arbitrage funds exploit price differences to make quick profits by buying low and selling high. They thrive in volatile markets, offer low risk, favorable tax treatment, and potential for higher returns.
These funds are a good place to start one’s investment journey. However, do note that multi-asset funds entail a higher level of risk compared to traditional high quality debt products
There are generally no stringent restrictions on the types of mutual funds eligible for loans, with both equity and debt funds being commonly considered.
Unless there is a completely new investment strategy or new geography, a retail investor should go with an existing fund with a proven track record rather than choose a new fund