Invest right and double your money in eight yrs

I’m 40 and am seeking to construct a baby schooling corpus with a lump sum of 13 lakh acquired on maturity of a hard and fast deposit. What mutual funds ought to I make investments the sum in full or partially to generate a good corpus in eight years?

—Kirtivardhan Deshpande


If invested proper, and if the market cooperates through the subsequent eight years, you’ll be able to greater than double your cash on this interval (assuming a 10-12% annualized returns). There are two keys to doing this proper —one is the place to speculate, and the opposite is how.

When it comes to the place to speculate, we first resolve on an asset allocation ratio on your portfolio. Given the eight-year time-frame, a 80:20 equity-to-debt allocation could be a very good match. As you close to the objective, say in one other 5 years, you would wish to e book your returns from the fairness portion of the portfolio to safe it.

Concerning tips on how to make investments, you’ll be able to make investments the debt portion straight away.

Nonetheless, for fairness, make investments over 12 to 18 months to keep away from market timing danger.

Srikanth Meenakshi is founder, Primeinvestor.in.

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