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.
This article was originally published on February 27, 2013.
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