To get the maximum benefit of 1,00,000 lakh INR, you can invest in various asset classes based on your risk appetite and investment goals. Here are some options:
If you are a young investor with a long investment horizon, you can invest a major portion of your money in equity mutual funds. Equity mutual funds invest in the stock market, which is a volatile market but has the potential to generate high returns over the long term.
If you are a risk-averse investor or have a short investment horizon, you can invest a major portion of your money in debt mutual funds. Debt mutual funds invest in debt instruments such as government bonds and corporate bonds, which are relatively less volatile than stocks.
You can also invest a portion of your money in gold and real estate. Gold is a traditional hedge against inflation and real estate has the potential to generate good returns over the long term.
Here is a sample investment portfolio for 1,00,000 lakh INR:
- Equity mutual funds (50%): Large-cap equity funds (30%), mid-cap equity funds (15%), and small-cap equity funds (5%)
- Debt mutual funds (30%): Liquid funds (10%), short-term bond funds (10%), and income funds (10%)
- Gold (10%): Gold ETFs or gold mutual funds
- Real estate (10%): Residential or commercial property
You can adjust the allocation of your portfolio based on your risk appetite and investment goals. For example, if you are more risk-tolerant, you can increase your allocation to equity mutual funds. If you are more risk-averse, you can increase your allocation to debt mutual funds and gold.
It is also important to rebalance your portfolio regularly. This means selling some of your winners and buying more of your losers to maintain your desired asset allocation. Rebalancing helps to reduce your risk and to ensure that your portfolio is on track to meet your investment goals.
You can also invest in other asset classes such as cryptocurrencies, peer-to-peer lending, and startup investments. However, these asset classes are more risky and should only be considered by experienced investors.