I am a single parent and don’t have too much financial expertise. So far I have saved all my savings as FD in a well-known bank in India. Of course the returns on FD are less/slow but at least as per my basic knowledge, it’s safe. Can you guide me how I can invest money in other mediums where the risk is medium and returns are good. Is there a smart way to save money in Dubai and earn on it and when in need have access to it easily? Can you make any suggestions?

 
Well, focusing on the saving options in the UAE, you could ideally combine the multiple asset class in your investment pot to fetch handsome yield and achieve the objective. Start with National Bond or Sukuk as it provides flexible short-term investment terms for minimum four weeks to as long as want to continue. An investment in Sukuk could draw a yield of 2-6 percent annually depending on the term of the investment. Certificates of Deposit (CD) and Money Market funds could also be the options, as they offer a superior yield and can select from as little as three months to as long as five years. Additionally, if you have enough cash cushion for down payment consider investing in a rent-yielding property with the help of a mortgage to produce high returns on your investment. Investment in international funds can also give a return of 4- 6 percent.

 
Simultaneously, if you are looking for some alternative option to fixed deposits in India then I would endorse investing in Debt Mutual Funds like government securities, corporate bonds, money market instruments, as it provides a secured investment instrument which at certain level assures a fixed return and moreover help to beat inflation by a margin with a calculated risk. Debt funds usually have a fixed growth period and since they are traded on the markets, there could be increase or devaluation in the capital value but could enjoy somewhat higher or equal returns. Secondly, the liquidity is high in debt funds as the money invested in could be withdrawn, stop or lay off the investment at any point of time in case of a financial emergency. Furthermore, going with SIP, Systematic

Investment Plan in a mutual fund route can also ensure relatively less risk compared to investing money directly in stocks. Lastly, calculate prudently the risk appetite, study the investment horizon and then put in your money.

As Published in Friday Magazine April 2017