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Focus on Liquidity & Safety

For a short period of around 9 months, invest your money in a liquid fund or a dynamic bond fund...

I need to accumulate Rs 5 lakh in 9 months for the down payment of a house. I can save or invest Rs 40,000-Rs 45,000 every month. Please guide, how I can achieve this goal.
— Anurag

Saving Rs 40,000-Rs 45,000 every month over the next nine months will add up to somewhere around Rs 3.6-4.05 lakh. Considering you will need Rs 5 lakh to make the down payment for the house you plan to buy, you should focus on liquidity and safety with the monthly savings you plan to invest.

In such a short span of less than a year you cannot expect returns to achieve your goal. You should look at parking the sum for this period in a liquid fund or a dynamic bond fund to benefit from the little gains that you can make and consider other avenues to make up for the shortfall.



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