VR Logo

Should I invest in an aggressive fund for four years?

Dhirendra Kumar tells why it might not be a good idea to invest in an aggressive fund for a short time frame

I have Rs 25 lakh which I want to invest for buying a house in four years time. Should I invest this amount in an aggressive fund enabling me to reduce the amount of home loan I plan to take? Also, would it be fine to invest the amount fully?
- Ali Asgar

No. In fact, I would like you to be on the side of caution. Buying a house in four years or five years time is a negotiable goal. It is not a goal like your children's education where you would need the money at a defined date for his/her college or school. Despite that I would say that remain on the side of caution and go with a balanced fund. Four to five years is not a very long time frame.

Also, never invest at one go. It is important to buy the house than actually get lucky with market timing. Market is very unpredictable in the short run and it can actually devastate your plan or belief system in the market if you invest at one go.

Post Your Query