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Where should I invest for my daughter's marriage in two years?

Dhirendra Kumar explains where to invest for the short term

Where should I invest for my daughter's marriage in two years?

I'm a government servant, about to retire and have experience of 15 years of investing in the market. Out of the retirement benefits I will receive, I want to keep 35 per cent for my daughter's marriage, likely in the next two to three years. Where should I invest this money? Also, suggest investing the remaining money. The pension is likely to be sufficient for my monthly expenses.
- Sanjay

Look at short-term debt funds and divide your money into two to three funds equally so that you're not dependent on one fund. When choosing a debt fund, make sure you are not investing in the best performing fund of its category. Because the best fund typically tends to assume some risk, which may not have yet shown its dark side. So, you have to make sure that you're avoiding the best performer because that is how you can avoid the risk. This is something that every investor should take note of. So, look for relatively more conservative funds, like those with a higher allocation to AAA-rated corporate bonds and government bonds.

For the remaining money, since you have experience in the market, choose one or two flexi-cap funds and be there. This is because you will not depend on this investment for your income and would like to maximise your return from these investments. This money should be put into equity. You are fortunate to have the safety net of pension, which will also be adjusted according to inflation, and it will keep getting revised upwards. It is a very fortunate situation, so make the most of it by maximising your accumulation return.

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