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Your investment plan may include multiple instruments such as mutual funds, FDs and gold to generate Rs 10 lakh in two years.
Your portfolio should include high-return assets to build Rs 10 lakh in two years. (Photo Source: Freepik)
There are often situations in life where you may need a significant amount over a short duration. It can be for reasons such as buying a car, funding a wedding, or building an emergency corpus.
Irrespective of the reason, you need to approach your goal with a disciplined and well-thought-out investment strategy. For many, saving Rs 10 lakh in just two years might seem like a daunting goal. But with the appropriate planning, the financial goal can be achieved easily.
To save Rs 10 lakh in 24 months, you must evaluate your current financial situation. It is critical to calculate your monthly income and expenses and identify areas where you can cut discretionary spending.
It is only with a combination of savings and returns from investment that you can achieve your goal. Your investment plan may include multiple instruments such as mutual funds, FDs and gold to generate Rs 10 lakh in two years. Your portfolio should include high-return assets, as the investment horizon is too short. The key to success here is a balance between safety and growth. Generally, high-return instruments like equities could be volatile in the short term.
Here’s a breakdown of how you can go about your investment strategy.
Investing In Gold
Monthly investment needed: Rs 20,000
Expected returns: 10%
Total investment: Rs 4.8 lakh
Estimated returns: Rs 50,903
Maturity corpus: Rs 5.31 lakh
Investing In Mutual Fund SIPs
Monthly investment needed: Rs 20,000
Expected returns: 12%
Total investment: Rs 4.8 lakh
Estimated returns: Rs 61,300
Maturity corpus: Rs 5.41 lakh
Thus, by saving at least Rs 40,000 monthly and investing it in instruments that earn high returns, such as gold and mutual funds, you can meet your objective of saving Rs 10 lakh in two years. It is important to remember that investments in mutual funds are subject to market risk.
You can also explore more secure investment options like bonds and fixed deposits (FDs), which typically offer 7-10% return over a two-year horizon. Adding these instruments, known for stable returns, could help in minimising risks against equity instruments.
You must understand your risk appetite and the terms and conditions of different mutual funds to decide which is right for you. To plan your investment, you can use an online SIP calculator.
For personalised advice tailored to your specific financial situation, income and risk appetite, it’s advisable to consult a SEBI-registered financial advisor.
You can also set up auto-debit mandates for your investments. It is important to stay disciplined. Stick to your monthly savings commitment even when you want to spend more on lifestyle expenses. Further, it is important not to panic and liquidate your investments if markets fluctuate slightly.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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Delhi, India, India
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