Answers to your questions

What Are The Best Ways To Invest Money In India?

The best way to invest according to me is goal based investing.

Consider the below example of 30 year old Rahul.

Age: 30 years

Married/Unmarried: Married

Amount can invest per month: 12k

Amount in Saving account: 2.2 Lacs

Now Rahul has 3 goals that he has defined for himself and wants to achieve them in a specific time period:

Goal 1: Rs 5 Lacs for Car in 2 years

Goal 2: Rs 65 Lacs for House in 16 years

Goal 3: Rs 1.4 Cr for Retirement in 22 years

Here’s what his financial advisor has suggested:

Goal 1: Rs 5 Lacs for Car in 2 years

Now 2 years is a short term target and this is your most difficult goal. Here’s what I can suggest:

Step 1: Put a lumpsum amount of 1.2 lacs and SIP of 3000 in the following funds:

HDFC Short Term Opportunities: Lumpsum 40K, SIP 1k
SBI Magnum Gilt Short Term: Lumpsum 40K, SIP 1k
ICICI Prudential Balanced Fund: 40K, SIP 1K

Now with this portfolio, even with a CAGR of 10% (which I would say would still be tough to achieve because of the short time period), you can get close to 2.3 Lacs at the end of 2 years.

I have taken a combination of Balanced and Debt Funds here, so that your portfolio is more on debt side to give you a safety, net however there is some equity portion also involved which would help you in generating the returns.

For the remaining 2.7 Lacs, you can take a car loan or deploy more capital to the same in case you have at that time.

Goal 2: Rs 65 Lacs for House in 16 years

This is a much more feasible goal as your time period is long term.

I would suggest you to start a Step up SIP in mutual funds for this purpose. Let me explain:

You can start a step up SIP in mutual funds for 6000 Rs pm and increase the mount by 10% every year. You can use the portfolio mentioned below. Now essentially what a step up SIP means is that suppose for year 2018, you start investing 6000 pm. From next year you will basically step up your SIP amount by 10% i.e from 2019 onwards , you will be investing 6600 pm. Similarly from 2020 onwards, you will be investing 7260 pm, and so on.

As you can see, this can help you achieving your target corpus.

Here’s the portfolio you can go for:

HDFC Hybrid Equity Fund: 2k
Canara Robeco Emerging Equities Fund: 2k
Kotak Standard Multicap Fund: 2k
The advantages of step up SIP over conventional SIP is:

The increase in the amount in SIP would be in line with your annual increment in salary. So it will be easier to accommodate, and not pinch. When you are increasing your SIP every year, you have a chance of generating a higher corpus as shown above, even by starting with a lower amount. Goal 3: Rs 1.4 Cr for Retirement in 22 years

So by now, out of the 12k (specified by you), we are left with 3k to deploy and we also have 1 Lac more to work with (in the bank).

I would suggest you to postpone your retirement by 3 years, so that we can use the above amount to meet this goal.


The SIP required would be more and as you had given a target for 12k for all three goals, there would be a short fall here.

So let me take the option where you decide to postpone your retirement by 3 year , so the revised goal is :

Goal 3 (revised): Rs 1.4 Cr for Retirement in 25 years

Invest 60k Lumpsum and 3.5k SIP in the following funds:

Mirae Asset Emerging Bluechip Fund: 20k lumpsum, 1k SIP
ICICI Nifty Next Fifty Fund: 20k lumpsum, 1.5k SIP
Kotak Standard Multicap Fund: 20k lumpsum, 1k SIP

This will help you achieve your corpus provided that this plan is followed with discipline and monitored regularly (twice a year). The funds chosen here are equity based and there is a risk, however your time period of 25 years would help offset/minimise that risk to a large extent, and would give you a greater probability of earning higher returns.

Hence the total we have spent towards your goals is 12.5k in SIPs and 1.8 Lacs Lumpsum, which leaves you with 40k, that should be there in your bank and will help you in case of any liquidity/emergency.

NOTE: We have not taken inflation into the picture here, which would play a pivotal role especially from a retirement planning perspective. So you may want to consider that.