I’m 26 and need to make investments for my short-term objectives. I plan to get married in a 12 months and wish funds for that. I can save ₹10,000 monthly. Proper now, I’ve invested in fairness however haven’t acquired anticipated outcomes as my portfolio will not be diversified. May you please recommend how I ought to diversify my portfolio?
—Shivani Beserwal
One 12 months is just too brief a time frame for any fair market funding while you essentially want the cash on the finish of the funding interval. The one scenario you possibly can make investments for 12 months within the inventory market is if you find yourself coping with the cash you could afford to lose considerably. It’s unlikely that you’d be able to take such a danger together with your funding right now. At finest, you possibly can make investments the quantity in some low-risk liquid funds and get respectable returns (around 6% earlier than tax) in 12 months.
Given the present excessive valuations within the inventory market, investing there with expectations of excessive returns in 12 months with a particular timeline can be an extremely dangerous enterprise.