Should I invest in Silver or Shares?


Hi Fpguru,

I am a student of TYBFM. I have saved about Rs 100,000 in the past six months. The money is lying idle in my bank account. Can you please suggest me some investment avenues. I was thinking I could  maybe buy either silver or some stocks. Can you please help me out?







Dear Yash,


We thank you for visiting our website & asking us a question. It is nice to see that you have been saving money at such a young age. Firstly you need to decide what are your financial goals and the time horizon to achieve them. If your investment time horizon is more than 5 years you should invest in equity oriented funds, if your time horizon is between 2-5 years you can invest in debt oriented balanced mutual funds and if you time horizon is less than 2 year you should invest in debt products like Fixed Deposit's, etc.


As you are still not sure about your goal and the time horizon we suggest you to park the money in ultra short term debt funds. Ultra short term debt funds get better yield than a savings bank account and a better instrument to park funds for shorter period.


Silver & gold are commodities and historically they tend to give lower returns than equities if invested for a longer period. Also silver in the recent past has been very volatile and seen major rise in prices in the recent past. How long this surge in prices continues is anyone’s guess? Therefore we suggest you to stay away from it currently and better have the right asset allocation according to your time horizon.


Do keep up this habit of saving & investing right!


Hope this solves your query!


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