Home > Money > Question
Need Expert Advice?Our Gurus Can Help

Looking to Grow 1 Crore Investment for High Returns: Where to Invest?

Milind

Milind Vadjikar  |395 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Sep 13, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
Asked by Anonymous - Sep 07, 2024Hindi
Listen
Money

I have 1 crore where can i invest to get bigger returns

Ans: Depends on your age, risk appetite, time horizon.

If your investment horizon is 1-3 years you may invest Balanced advantage fund

If your investment horizon is 3-5 years you may invest in equity savings fund

If your investment horizon is above 5 years then you may invest in flexicap fund.

You may do single lumpsum or spread your investments over 10 months(10Lac per month) to get some benefit of cost averaging.

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing

Happy Investing
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
Money

You may like to see similar questions and answers below

Nitin

Nitin Narkhede  |21 Answers  |Ask -

MF, PF Expert - Answered on Sep 09, 2024

Asked by Anonymous - Sep 07, 2024Hindi
Listen
Money
I. Have 1 crore where can i invest for 2 yrs to get bigger returns, that amt is for ur daughter marriage
Ans: Dear Friend,
Thank you for your query. It's great that you're planning ahead for your daughter's marriage. With ?1 crore available for investment over a two-year period, you’ll want to balance growth with a moderate level of risk, since the time horizon is relatively short.
Key Considerations:
Since the investment horizon is only two years, it's important to prioritize capital preservation while seeking returns higher than traditional savings accounts or fixed deposits. Investments in high-risk options like equities are not advisable for such a short duration, as markets can be volatile. Instead, a mix of low to medium risk instruments will be more suitable.
Suggested Investment Options for Two Years:
1. Debt Mutual Funds - Short-Term Debt Funds or Corporate Bond Funds can offer returns in the range of 6-8% per annum. These funds invest in government securities, corporate bonds, and other fixed-income instruments. They are safer than equity investments and are suited for a 2-year investment period.
- Dynamic Bond Funds can also be considered, as they adjust their portfolios according to interest rate fluctuations, potentially offering better returns than fixed deposits.
2. Fixed Deposits (FDs) - Though FDs offer lower returns (typically 6-7% per annum), you can opt for Corporate FDs from highly rated companies which offer slightly higher interest rates. FDs provide safety and guaranteed returns, but they may not grow your wealth significantly.
3. Arbitrage Mutual Funds - Arbitrage funds take advantage of the price difference between the cash and futures markets. They are relatively low-risk and provide returns similar to short-term debt funds but with better tax efficiency if held for more than one year. These can be a good option for a two-year horizon, offering returns of around 5-6%.
4. High-Quality Non-Convertible Debentures (NCDs) - NCDs from reputed companies offer fixed interest rates, usually ranging from 7-9%. They can be a good option for someone seeking stable returns. However, be cautious about the credit ratings of the issuing company.
5. Ultra Short-Term Mutual Funds - These funds invest in short-term debt instruments and are suitable for a two-year horizon. They generally offer returns slightly higher than savings accounts, around 6-7%.
6. Post Office Monthly Income Scheme (MIS) - If you prefer absolute safety, this government-backed scheme offers around 6.6% interest per annum, with monthly interest payouts. You can park part of your investment here for assured returns.
7. Liquid Funds or Short-Term Gilt Funds - Liquid funds invest in money market instruments and offer stable returns with high liquidity. For a two-year period, liquid funds can yield around 5-6%. Gilt funds are another option, which invest in government securities and are suitable for low-risk investors. These funds may provide returns in the range of 6-7%.
For Example, you can plan a Portfolio Allocation for ?1 Crore as follows
1. Debt Mutual Funds (40% - ?40 Lacs) : Short-term debt or corporate bond funds for capital appreciation and safety.
2. Fixed Deposits or Post Office MIS (30% - ?30 Lacs) : Secure investments with guaranteed returns.
3. Arbitrage Funds or Dynamic Bond Funds (20% - ?20 Lacs) : To benefit from moderate growth with tax efficiency.
4. Liquid Funds (10% - ?10 Lacs) : For high liquidity and short-term needs.
It’s highly recommended to consult with a certified financial advisor to fine-tune this plan according to your exact goals and risk tolerance.
Best regards,
Nitin Narkhede
Founder & MD, Prosperity Lifestyle Hub
https://Nitinnarkhede.com
Free Webinar https://bit.ly/PLH-Webinar
https://bit.ly/m/PLH-Links

..Read more

Latest Questions
Milind

Milind Vadjikar  |395 Answers  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 14, 2024

Asked by Anonymous - Oct 12, 2024Hindi
Listen
Money
Hello Sir, I'm 44 years of age and want to plan for creating a corpus of 5 Cr by age of 60. I have 40L lying in savings which I want to invest in MFs and start with Monthly SIP as well apart from this. At 60 I'm looking to start a SWP, in regards to this could you please suggest which MFs should I invest in to achieve this goal and how should I diversify SIP and lumpsum investments? Thank you!!
Ans: Hello;

Please deploy the 40 L staggered over 6 months in pure equity mutual funds.

Also start a monthly sip of 40 K for 16 years.

You may allocate sip and lumpsum as follows:
1. Flexicap type mutual fund for eg. PPFAS flexicap fund[G] (25%)

2. Large and Midcap type mutual fund for eg. Kotak equity opportunities fund[G] (25%)

3. Midcap type mutual fund for eg. Nippon India Growth fund[G] (25%)

4. Smallcap type mutual fund for eg SBI small cap fund [G] (12.5%)

5. Thematic type mutual fund for eg Tata Digital fund[G] (12.5%)

Funds recommended are in top quartile in terms of performance in their respective category.

Both sip and lumpsum investments will yield you a corpus of 5 Cr+, 16 years from now, as desired.

After 55 you need to transfer your gains to liquid or ultra short duration debt funds to protect it against market volatility.

After retirement you move your corpus to conservative hybrid debt type mutual fund for eg. Kotak debt hybrid fund and do an SWP at the rate of 3% annually you may expect a monthly income of 1.25 L(pre-tax).

Happy Investing!!

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

...Read more

Ravi

Ravi Mittal  |352 Answers  |Ask -

Dating, Relationships Expert - Answered on Oct 14, 2024

Relationship
Hello, I m 21 female I m in a long distance relationship with 32 year male.this person was behind me and always asked me to give him a chance to prove his love for me. At that period i was afaird of relationships as I didn't have courage to go against wish of my parents as i know they wolud never agree for love marriage,so that is fir sure i'll do arrange Marriage. All these things have been explained by my side to this person.He gad feelings for me thats what he showed to me even I felt a connection towards him, so we decided let's not commit anything anout marraige as we both wee not sure about these thing. After some time i realised these person has already made his mind ki he'll date me and he wanted to have everything that an relationship has but he will not marry me.But i m completely in love with.Even i told him about it ki I can't share him n won't be able to see him.with someone else.i just can't imagine myself without him. I fought with him even begged and cried but he always defend his self sayi g i told already ki he loves me and will keep loving me but will not marry me . He vists me after 6-9 months interval every time he visuts me he needs to have physical relationship. I don't know whether I m right or wrong but i feel like I m being used by him. I tried several time to end this relationship but i end up chasing him.Plz help me,guide me
Ans: Dear Rutuja,
If you have the slightest feeling that he doesn't share the same feelings for you as you do for him, or that he has wrong intentions, you have every right to end the relationship. In fact, that would be the right thing to do. I understand that it is difficult to break up with someone you love, but does he love you? Don't you think you deserve someone who loves you and does not make you feel as if you are being used?

Have a clear conversation with him- address all your concerns. If he still maintains his stand of not getting married to you, then let him know that you are not on the same page as him. Remember, for a relationship to work, your future goals need to align.

Best Wishes.

...Read more

Ravi

Ravi Mittal  |352 Answers  |Ask -

Dating, Relationships Expert - Answered on Oct 14, 2024

Asked by Anonymous - Oct 10, 2024
Relationship
I am a girl who met a muy in a friendly chat app and been talking to him through text and calls since the past 6 months...he told me about his past 3 breakups which were online too and he didnt meet those girls.He told he loved my nature and loves me madly n cannot live without me..i was moving with him as a friend initially,but feeling turned into love gradually..he lied to me about his name too n i found many a times flirting and chatting with other girls.Still i have forgiven as he is my first love. Recently,I met with an accident and was in a serious condition ..my phone was with my relative and she told him about my condition when he put a message to me.He even asked my relatives about the hospital address n my relative has given it. He didn't turn up and was chatting online with other girls till early morning n continued later too by chatting n cracking jokes when i was in such a serious condition.A friend of mine told me about this. When i confronted him after my discharge,he told my relative didnt give the response which is a lie ..as the proof chatting with other girls is there..n later he didnt even text to know how am i for 2days.. I am an emotional girl ,attaching n detaching is a bit difficult thing...i am broken ..when he didnt love me ..what made him use the words like he cannot live without me n will marry me. He asked for a chance,i am fed up of his lies..i made him introduce to my parents also..When i am so true to him..why does he need to chat n flirt with other girls?..even after knowing my condition instead of meeting me..he was chatting.. We still didnt meet,thought of meeting n met with an accident Does he deserve an other chance or should i leave him,please suggest mam.Why is he doing so?.I even helped him small amounts financially too when he asked for.
Ans: Dear Anonymous,
I am very concerned about the last part of your question where you mentioned helping him financially. We ask all our dating app users not to discuss money let alone involve in a financial transaction with an online match. It gives me the impression that he might have been pursuing the relationship with you for monetary benefits; I am not saying that with surety but there is always a chance of that happening.

And now let's address your main concern- if you should give him another chance. I cannot decide that for you but let me ask you one thing- do you think you deserve to be with a person who did not care that you were in a critical condition and continued flirting with others? Even if we keep your accident aside, do you think it is a healthy relationship where one partner keeps flirting with people outside the relationship? I don't think so.

Please make the right choice and don't focus on momentary happiness, think about how this relationship will affect your future.

Best Wishes.

...Read more

Ramalingam

Ramalingam Kalirajan  |6592 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Oct 14, 2024

Asked by Anonymous - Oct 14, 2024Hindi
Money
Hi I am 46 years old, my current investment is -as the follows, 1.90 cr in bank FD, 10 lakh in mutual fund and stocks. 50 lakhs for child’s education 1 child in grade 10. I have a house worth 2 cr which I have given for rent 40k monthly .I do not want to work any more and plan to retire in the next 2 years in my other house in my village. Is it possible to retire by 50 years.
Ans: At 46, you have built up a solid base for retirement. Your current investments include Rs 1.9 crore in fixed deposits (FDs), Rs 10 lakh in mutual funds and stocks, and Rs 50 lakh set aside for your child’s education. Additionally, you own a house worth Rs 2 crore, generating a rent of Rs 40,000 per month. Retiring by 50 is a realistic goal, but careful planning is needed. Let’s break down how this can be achieved and sustained.

Monthly Expenses After Retirement
The first step to ensuring a successful retirement is to estimate your monthly expenses. Since you plan to retire in your village house, your living costs might be lower than in the city. However, it's important to account for:

Regular living expenses such as food, utilities, and transportation.
Medical and health care costs that might increase as you age.
Inflation, which will erode the value of your savings over time.
You should aim to create an emergency fund and a monthly income plan that covers at least your basic needs. Your rental income of Rs 40,000 will cover a part of this, but more sources of income will ensure financial stability.

Education Fund for Your Child
With Rs 50 lakh set aside for your child’s education, you are already in a strong position. However, as your child is currently in grade 10, higher education expenses could increase significantly over the next few years.

To maintain the growth of this fund, consider placing it in a combination of low-risk instruments like debt mutual funds. These funds are less volatile and offer better returns than traditional savings methods. This strategy ensures that the education corpus remains intact and grows moderately until it's needed.

Reassessing the Fixed Deposits (FDs)
You have Rs 1.9 crore in fixed deposits, which provides stability. While FDs offer guaranteed returns, the interest rates can be lower than inflation over time. Hence, relying too much on FDs could limit your long-term growth.

Since you are planning to retire within two years, it's essential to start shifting a portion of this money into balanced investment options. These can include mutual funds with a mix of debt and equity, which provide a balance of stability and growth.

This move can help you combat inflation and generate better long-term returns without too much risk.

Mutual Fund and Stock Investments
Your Rs 10 lakh investment in mutual funds and stocks is another important part of your portfolio. You could consider:

Increasing your exposure to mutual funds with a focus on equity, especially in growth funds. Over the next two to three years, these funds can potentially generate higher returns, enhancing your retirement corpus.

Actively managed funds can offer better results compared to index funds, as professional fund managers help navigate market volatility.

Avoid direct funds, as they require constant monitoring and may lack the guidance that comes with investing through a certified financial planner (CFP).

You can slowly phase out some of your FD savings and channel them into well-diversified mutual funds. This strategy will increase your overall return potential and give you more flexibility.

Rental Income and Sustainable Withdrawals
Your rental income of Rs 40,000 is a good source of passive income. Post-retirement, you will rely more on this money to meet your monthly expenses. But it is crucial to build a sustainable withdrawal strategy from your other investments as well.

Consider the following steps to ensure you have enough income post-retirement:

Systematic Withdrawal Plan (SWP): You can set up an SWP in your mutual funds to provide a regular stream of income. An SWP allows you to withdraw a fixed amount each month while letting your corpus continue to grow.

Diversification of sources: Along with your rental income, an SWP from your mutual funds, interest from fixed deposits, and dividends from your stock investments will help you maintain a steady cash flow.

Medical Insurance and Health Care Planning
One of the most important aspects of retiring early is securing your health care. Medical costs can take up a significant portion of your savings if not properly managed.

Ensure you have a comprehensive health insurance policy with adequate coverage. Additionally, consider a top-up health insurance plan to cover higher medical expenses that could arise in the future. This will protect your retirement corpus from being depleted due to medical emergencies.

Managing Inflation and Risk
Inflation can severely impact your retirement plans. The costs of goods, services, and medical care will rise over time. Therefore, your investments must grow faster than inflation to maintain your lifestyle.

To counter inflation, it’s advisable to:

Maintain a portion of your portfolio in equity. Equity investments historically offer higher returns compared to debt and fixed-income options. Over the long term, equities can help your corpus grow at a rate that outpaces inflation.

Diversify into debt funds to reduce risk while maintaining liquidity. A mix of equity and debt will help you stay safe from market volatility but still give you decent growth.

Risk Management in Retirement
Since you plan to retire at 50, it’s essential to preserve your capital while also growing it. The strategy of balancing risk and reward is crucial. You can:

Lower the risk in equity investments as you approach your retirement date. You could reduce your equity exposure gradually and shift to lower-risk investments like debt funds, which are more stable.

Avoid high-risk investments or speculative moves, especially when you are so close to retirement. Your focus should now be on wealth preservation with moderate growth.

Final Insights
Yes, retiring by 50 is possible, but it requires careful management of your assets and income sources. Here’s a summary of how you can achieve this:

Reassess your fixed deposits: Move a portion into mutual funds to increase returns while keeping a part for liquidity.

Increase your mutual fund investments: Actively managed funds can offer better long-term growth, especially when you are not working.

Leverage your rental income: Rs 40,000 monthly rental income will cover part of your expenses, but supplement it with SWPs from your mutual fund corpus.

Preserve the education fund: Invest in safer instruments to ensure the Rs 50 lakh remains secure and grows steadily.

Diversify and manage risk: A mix of equity and debt will give you growth and safety, and help fight inflation.

Health care planning: Ensure you have strong health insurance coverage to protect your retirement corpus from medical emergencies.

By taking these steps, you can retire at 50 with financial security and peace of mind.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x