This is not the time to lock yourself into long-term fixed deposits

If you invest for the shorter-term now, you will be able to roll over to higher rates when the interest-rate cycle turns

While it is difficult to predict the trajectory of stock prices, equity funds or gold, one thing is certain: Interest rates will remain low in the near future. The repo rate has declined from 6.25 per cent in February 2019 to 4 per cent (since May). Returns offered by liquid funds and other short-term investments have fallen in tandem. Liquid funds have given average returns of 4.4 per cent over the past year.

Traditionally, conservative investors have parked their short-term money in fixed deposits (FDs). The savvier ones have used liquid and overnight funds. With the returns from these funds declining