How do i allocate my funds?

How can i allocate my funds effectively every month as i am doing savings upto 15-18k a month, and i have a commitment next year, so would like to invest these for a period of 1 year,,, which are the effective ways? with better returns and less risks??

5 Replies to “How do i allocate my funds?”

  1. Put it all in a money market fund. Everything that might pay more has a significant liquidity risk over short periods of time like a year and might prevent you from meeting the commitment that you mentioned.

  2. You should invest in Debt Fund for a period of 1 year. you can select a good fund with very very less equity exposure of say less then 10%. HDFC Monthly Income plan (Short Term Plan) would be ideal for your case.
    You can go on following site, you will get a good article on portfolio re-balancing.which will help you in understanding how to handle your portfolio and re-balance it from time to time.

  3. You can invest in the Mutual funds. Not all MFs are as riskier as the Equity funds. There are balanced funds and low risk funds which will guarantee your invested capital.
    You can choose them and invest in them. You can also expect a modest gain for your invested amount in such funds.

  4. Friend,

    If you have a commitment to fulfill by next year, it is not at all recommended to put your money to equity market. You should select debt funds that will give you some fair returns above compare with Bank FD and less compare with Equity.

    Select and put money to some good liquid fund as SIP (systematic Investment Plan) in a monthly basis and select FMP (Fixed Maturity Plan) mutual funds. This will meet the above return criteria and security to your money.

    Don’t go to any financial planner for this. Most of them are thinking only about there commission and profit. Most of them have this motto “Let the father die, I have to get money”

    So think wisely and act as per that.

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