Where can I invest Rs 12 lakh for 3-4 years?

How should I invest Rs 12 lakh for 3-4 years to generate wealth? Is a debt fund with a Systematic Transfer Plan a good option? - Anonymous

When aiming to generate wealth in just three to four years, it's important to manage expectations. Wealth creation is typically a long-term process, especially with equities, which perform best over a decade or more. For shorter investment periods, a conservative approach works best. Therefore, conservative hybrid funds or equity savings funds are more suitable than aggressive equity investments.

If you opt for a conservative hybrid fund, which primarily consists of fixed-income investments, consider spreading your investment over the next 3-4 months. In other words, don't invest your entire money in one go; invest Rs 3-4 lakh over three to four months. This approach will reduce exposure to market volatility.

Also read: NPS Tier II vs debt funds: Which is better for short-term investing?