Monday, September 22, 2008

10 Lakhs in 3 years

From: lalitesh kumar
Sent: Sun, 17 Aug 2008 09:46:46 +0530 (IST)
Subject: Please suggest me .

Hi Srikant,

This is lalitesh here aged 30yrs and currently i dont have any laibility (loans) to me , but i am planning to book a flat by next 3 yrs. And the budget is around 60L , out of which 10L i will be paying as down payment and rest 50L will get though any bank as Loan.

Now i need your suggestion to accumulate those 10L in next 3 yrs, what i hav planned ,i'll investing around 24-25k /month in any of the debt /hybrid fund from Jan 2009. so could you please suggest me if my planning looks fine.

Or pls suggest me how shall i plan to collect these 10L, and also suggest me about the funds where shall i invest.

Your help will be appreciable as always. Looking forward for ur reply.

Best Regards.

Dear Lalitesh,
Hi, nice to see your mail again.
Actually, with your savings of 24-25k per month, it should not be very difficult to achieve 10L by end of 3 years.
Let's calculate
24000 * 12 = 2,88.000
2,88.000 * 3years = 8,64,000
Even if you keep in FD@ 8%, your investment will get you 9.75.000. so, you will have absoultely no problem in achieving your 10Lakhs.
If you invest in "SAFE" Funds, like Arbitrage Fund, MIP funds, you will get (on an average) around 10% post tax, so your investment of 24000 for 36 months, should get you about 1004000. which is your target amount.
I would suggest you to invest in FMPs, a bit, (FMPs nowadays assure you 10.5%), but go for Arbitrage funds, you will achieve your target very easily. I would have preferred you to invest in Large Cap Funds and also Balanced Funds, but maybe you prefer "safe", so I am going for Arbitrage Funds. Otherwise, you could go for Large Cap Funds (Birla Sunlife Frontline Equity / HDFC Top 200 / Sundaram Select Focus / DSPML Top 100), with Dividend Payout Option, And whatever Dividend you get, you could shift to Arbitrage Funds and also keep booking Profit at regular intervals and shift the amount to Arbitrage Funds.

Best of luck,
srikanth shankar matrubai

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