HYDERABAD: While Hyderabadis do not figure in the list of those keen on mutual funds investments, as suggested in a recent study, it is learnt that more and more techies in the city are turning to low risk investment options, possibly, in a bet to have better odds during a crisis. A recent study published by PriceWaterhouse Coopers and Indian Chamber of Commerce has observed that Mumbai, Delhi, Bengaluru, Chennai, and Kolkata contribute to 92 per cent of mutual funds investment in India.
Considering the market uncertainty and fear of layoffs, high liquidity rate of mutual funds is enabling several techies to go for the low-risk mode of investment. “The software field has become turbulent and once we pin down this to be our profession, having a backup has grown to be of more value,” explains S Vinod Kumar, a techie and an investment planner.
“There is no lock-in period in mutual funds unlike other investment options and there is high liquidity, unlike property investment,” Kumar added. Though investment options in gold, recurring deposits or the latest fad, Bitcoins, have been the common choices, long-term returns and high liquidity rate are exciting techies to take to mutual funds.
“It came as a late revelation that mutual funds offer more returns than that of bank deposits,” said P Venkata Ratnam, a tech professional from an IT giant in the city who has taken the route of Systematic Investment Plan. “Right now, all that holds key is the total sum assured for the investment I make because in times of a sudden layoff, there would be a good lumpsum to sustain for at least three months,” he said. However, new entrants into this fold need to be careful of fraudulent financial advisors opine experts.
“Due to ease in creating online accounts and less brokerage, a lot of IT professionals are exposed to unscrupulous phone calls and texts. Such calls are from Indore, Mumbai, Rajasthan, and MP who give meaningless advice for which they even charge. Newbies need to be careful,” said Pankaj Jain, an Investment advisor.