Add fixed deposits to your portfolio as rates on offer are quite reasonable

Many financial planners advise using this instrument for investment as well as meeting short-term goals

With interest rates expected to go southwards in the coming months, it could be a good time for risk-averse investors to get locked into fixed deposits (FDs), or even recurring deposits (RDs). What works in favour of these instruments is the safety factor — a crucial factor, given the problems being faced by non-banking financial companies, which, in turn, are hurting debt funds.

The returns offered by such instruments are in the range of 6 per cent and 7.5 per cent a year. However, once the tax comes into play, the returns would be to the tune of 4-6 per