To generate wealth, where should I invest Rs 12 lakh for three years? | Value Research Dhirendra Kumar explains the right approach to invest for a near-term goal
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To generate wealth, where should I invest Rs 12 lakh for three years?

Dhirendra Kumar explains the right approach to invest for a near-term goal

I have a lump sum of Rs 12 lakh, which I want to invest for three to four years. How and where should I invest? Should I invest in a debt fund and initiate an SIP through a Systematic Transfer Plan? The aim is to generate wealth.
- Mayur Goswami

To generate wealth in only three to four years? That's my worry. You are not going to get wealthy in three to four years. Equities generate superior returns, but they require a longer time frame of about 10-15 years. If you don't have that much time, you have to be extremely conservative.

If you're likely to need a meaningful part of this money in three-four years, you have a problem at hand, and you should be extremely conservative. Even for a negotiable goal, I don't think one should look further than equity savings funds or conservative hybrid funds.

If you are going to invest in a conservative hybrid fund, which is dominantly fixed income, and you only have three-four years. If you're going to spread this money over the next 12-18 months, then about half of that time is gone. So spread this money over the next three-four months.


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