Hope you are doing good.

I'm new to investments and interested in making short term investments (say two years).

I'm looking to invest around Rs 8,000-10,000 per month.

Could you suggest a couple of decent options where I can invest?

Also, if they are not taxable, it will be very helpful.

Ans: Short-Term Investment Strategies for Achieving Your Goals
Assessing Your Short-Term Goals
With a horizon of 4-5 years, your objectives of funding a marriage and buying a car require a conservative investment approach to minimize risk while aiming for reasonable returns. Let's explore suitable strategies to meet these goals effectively.

1. Debt Mutual Funds
Consider allocating a portion of your monthly investment towards debt mutual funds, which offer stability and relatively lower risk compared to equity investments. Opt for short to medium duration debt funds or dynamic bond funds that provide potential for higher returns than traditional fixed deposits.

2. Recurring Deposits (RDs)
Investing in Recurring Deposits (RDs) can be a simple and convenient option to accumulate funds for short-term goals. RDs offer fixed returns with the flexibility of monthly contributions, allowing you to build a corpus gradually over time.

3. Liquid or Ultra Short-Term Funds
Liquid funds or ultra-short-term funds are suitable for parking your short-term savings, offering liquidity and stability. These funds invest in short-term debt securities, providing potential for higher returns than traditional savings accounts while maintaining capital preservation.

4. Systematic Investment Plans (SIPs) in Balanced Funds
Consider investing in SIPs in balanced funds, which offer a mix of equity and debt exposure, balancing growth potential with downside protection. Balanced funds can provide stability during market fluctuations while aiming for reasonable returns over the medium term.

5. Goal-Based Investing
Segment your short-term goals, such as marriage and car purchase, and allocate investments accordingly. Determine the required amount for each goal and set up separate investment accounts or portfolios to track progress towards achieving them.

6. Regular Review and Adjustment
Periodically review your investment strategy and make adjustments based on changing market conditions, goal timelines, and personal circumstances. Consider reallocating funds between investment options to optimize returns and manage risk effectively.

Conclusion
By diversifying your investments across debt mutual funds, RDs, liquid or ultra-short-term funds, and SIPs in balanced funds, you can create a robust short-term investment strategy to achieve your goals within the 4-5 year horizon. Stay disciplined in your savings approach and monitor your progress regularly to ensure you're on track to meet your objectives.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: mutual fund is a good investment for you

Ans: You can consider investing in Equity Savings funds.

You can do lumpsum investment.

They are taxed like an equity fund (more optimal way) although they invest almost equal amount in equity bonds and arbitrage.

They are relatively less riskier then pure equity funds.

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

You may follow us on X at @mars_invest for updates

Ans: Investing Rs. 1.5 lakh is a great opportunity to build a solid portfolio. A diversified approach ensures balanced risk and stable long-term growth. Below are well-suited options to consider for your investment.

Mutual Funds for Wealth Creation
1. Equity Mutual Funds
These funds are ideal for long-term goals.
They invest in stocks and offer high returns compared to other instruments.
Actively managed funds help you outperform market indices.
2. Balanced Advantage Funds
These funds balance equity and debt investments.
They reduce volatility while offering reasonable returns.
Suitable for moderate risk appetite and long-term growth.
3. Debt Mutual Funds
These funds are safer and provide predictable returns.
Useful for preserving capital and managing portfolio risk.
Invest in debt funds for goals within 3-5 years.
Government-Backed Schemes
4. Public Provident Fund (PPF)
PPF offers guaranteed returns with tax benefits.
The lock-in period is 15 years, aligning with long-term goals.
Interest earned is tax-free and compounds annually.
5. Sukanya Samriddhi Yojana (SSY)
Consider SSY if you have a daughter under 10 years of age.
High fixed returns and tax benefits make it a secure option.
Ideal for building a corpus for your daughter’s education or marriage.
6. National Pension System (NPS)
NPS is designed for retirement planning.
It provides equity exposure with low management costs.
Tax benefits under Section 80C and 80CCD (1B) enhance returns.
Gold as a Strategic Investment
7. Sovereign Gold Bonds (SGBs)
SGBs offer the benefit of gold investment without storage concerns.
These bonds provide annual interest along with gold price appreciation.
Ideal for long-term wealth preservation and diversification.
Emergency Fund and Liquid Options
8. Liquid Mutual Funds
Allocate a small portion to liquid funds for emergencies.
These funds offer easy withdrawal and low risk.
Returns are better than traditional savings accounts.
9. Recurring Deposits or Fixed Deposits
Recurring deposits help you create a short-term savings buffer.
Fixed deposits offer guaranteed returns but are less tax-efficient.
Insurance-Cum-Investment Policies
10. Review Existing LIC or ULIP Policies
Insurance-cum-investment products often deliver low returns.
Assess the surrender value of such policies.
Reinvest the amount in mutual funds for better returns.
Suggested Allocation Strategy
To diversify Rs. 1.5 lakh, consider this allocation:

Rs. 50,000: Equity Mutual Funds for long-term wealth creation.
Rs. 30,000: Balanced Advantage Funds for moderate risk exposure.
Rs. 20,000: Public Provident Fund for secure, tax-free growth.
Rs. 20,000: Sovereign Gold Bonds for diversification.
Rs. 30,000: Liquid Funds for emergencies or short-term needs.
Tax Efficiency
Mutual funds provide tax efficiency for long-term gains.
LTCG above Rs. 1.25 lakh is taxed at 12.5% for equity mutual funds.
Debt mutual funds are taxed as per your income slab.
Government-backed schemes like PPF and SSY offer tax-free returns.
Finally
Your Rs. 1.5 lakh can grow steadily through diversified investments.

Mutual funds should form the core of your portfolio for wealth creation.

Add secure options like PPF and SGBs for balance and stability.

Review your existing LIC policies and move towards higher-return investments.

Stay disciplined and monitor your portfolio regularly with the help of a Certified Financial Planner.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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