Maximise Your Savings

By Research Desk |Value Research; Apr 6, 2011

I have Rs 5 lakh to invest which I will need 5-6 years later to pay as the down payment for a flat. I want to maximize this sum in this period; please suggest option to invest this sum.
- Vinod


Your strategy to maximize your savings to build a bigger down payment for a flat 5-6 years from now is commendable. Investing in lump-sum is not the best way to invest in mutual funds. You should look at investing regularly through systematic investment plans. You should consider parking the Rs 5 lakh in a liquid fund and initiate a systematic transfer plan into a large cap fund such as DSPBR Top 100 Equity or Franklin India Bluechip and a large- and mid-cap fund such as HDFC Top 200 or Fidelity India Growth and track the performance of these funds periodically to note its progress. This way you are likely to gain on your investments through systematic investing and the power of compounding for a higher down payment 5-6 years later.