Save Rs 10 Lakh In Two Years: A Quick Guide To Investment Strategy
Your investment plan may include multiple instruments such as mutual funds, FDs and gold to generate Rs 10 lakh in two years.
Often, situations arise in life where you need a large sum of money within a short period. Whether it's purchasing a new car, covering wedding expenses, or setting up an emergency fund, these financial demands could catch you unawares.
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 appropriate planning can make this financial goal easily achievable.
The first step is to evaluate your current financial situation. Calculate your monthly income and expenses and identify areas where you can cut discretionary spending.
Achieving your financial goal will require a strategic blend of disciplined savings and smart investment returns. 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 is advisable to consult a SEBI-registered financial advisor.
You can also set up auto-debit mandates for your investments. Staying disciplined is important. Stick to your monthly savings commitment even when you want to spend more on lifestyle expenses. Finally, do not panic and liquidate your investments if markets fluctuate slightly.
