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Where should a working woman invest Rs 20,000 every month?

Dhirendra Kumar advises an asset allocation plan

Where should a self-employed woman invest her earnings of about Rs 10,000 to Rs 20,000 every month? All the expenses are borne by the spouse.
- Gopal Prasad

You are fortunate to have all the freedom to use this money. But do not relish it by spending all of it. Instead, utilise it for greater freedom by investing it methodically. The regular principles of investing would apply. Where this amount should be invested would depend on the time horizon.

If you are likely to need the money in five years or less, be conservative. And if it is a non-negotiable goal, be even more conservative and do not go beyond fixed income. If it is a negotiable goal, say for the down payment of a house where you won't mind postponing it by a year or so, then invest 15-20 per cent in equity and the remaining in fixed income. If the goal is away by five years and more, invest the money in equity and ensure it stays there. Don't look at the values every day to avoid anxiety.

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