With interest rates on bank deposits threatening to hit rock bottom and financial markets in turmoil, just what is an investor to do if he had $50,000 cash in hand? Three experts give their views

Mr Ben Fok
Chief executive,
Grandtag Financial Consultancy

'In this economic climate, it is good to have a combination of savings and investments. Savings are still fundamental to financial planning and you should have at least three to six months' worth of savings to see you through a retrenchment, assuming no retrenchment benefits are given. Fixed deposits might be a good choice as you can preserve your capital in a low-risk environment with generally higher interest rates than savings accounts.

'If you have put away sufficient savings, this could also be a good time to look at the stock market because price-earnings ratios are very attractive. People can think about accumulating assets for the future. I would recommend exchange-traded funds, which are based on stock indices.'

Mr Chris Firth
Chief executive,
wealth management firm dollarDEX

'Risk-averse people should stick to fixed deposits, but since interest rates are so low at the moment, they can also look into money market funds. These are low-risk unit trusts that can make around 1.5 to 1.6 per cent per annum.

'Although they are not guaranteed and you could lose a small part of the principal sum, there is at least a chance of keeping pace with inflation. This is unlike fixed deposits, which are likely to erode over time.

'Braver souls can look into balanced funds, which are combinations of equities and bonds, and get back into the market in a gradual way. Personally, I have put some money into money market funds and some into equities, mainly in China and the rest of Asia.'

Mr William Cai
Deputy head of investments,
GYC Financial Advisory

'You can put your money in fixed deposits or savings accounts in the short run, for safety's sake. But everyone needs to grow his money, so in the long run this is not the way to go. It is very likely that interest returns would not be able to meet the erosion of deposits due to inflation. I believe that inflation will be pretty high in the near future.

'However, people shouldn't be too pessimistic now as there are great opportunities to be had if you handle them right. Try to invest in stages and stick to blue-chip stocks. As with everything in the market, there is always a risk involved, so the key thing is to invest only what you can afford to risk.'

This article was first published in The Straits Times.