I’m a single parent and don’t have much financial expertise. So far I have saved all my savings as fixed deposits in a well-known bank in India. The returns are low but at least it’s safe. Can you guide me as to 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?

To answer your last question first, focusing on saving options in the UAE, you could ideally combine the multiple asset class in your investment pot to fetch a handsome yield.

Start with National Bonds or Sukuk as they provide flexible short-term investment terms for a minimum of four weeks to as long as you want to continue. An investment in Sukuk could draw a yield of two to six per cent annually depending on the term of the investment. Certificates of Deposit (CD) and Money Market funds could also be options, as they offer a superior yield and you can select from as little as three months to as long as five years.

Additionally, if you have a cash cushion for a down payment, consider investing in a rent-yielding property with the help of a mortgage to produce high returns on your investment. Investment in global funds can also give a return of four to six per cent.

To come to your other question about investing in India, if you are looking for some alternative options to fixed deposits in India then I would endorse investing in Debt Mutual Funds like government securities, corporate bonds and money market instruments as they provide a secured investment instrument, which at certain levels assures a fixed return. They can also 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 an 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Secondly, the liquidity is high in debt funds as the money invested could be withdrawn at any point of time in case of a financial emergency.

Furthermore, going with SIP, a 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.