POSTED BY November 12, 2010 8:13 pm COMMENTS (8)ON
Hello All ,
I need advice on some buffer fund ( money ) available to me every quarter for which I need to know best intrument to invest in
Due to variable pay structure there is some amount of buffer fund available ( not fixed ) at the end of every quarter which is available to me. This buffer is around 10-20K per quarter. Since I have already invested in SIP and all other possible instrument as part of my monthly financial planning. I need to know best instrument which I should invest this money . This money is not fixed but can vary from 5K to 30K per quarter.
I have done all the necessary investments needed for myself
– Mutual funds ( SIP’s )
– Term insurance
– PPF and LIC
– Contingency fund
I dont want this to be lying the bank and earn low interest so I am eyeing on some better instrument to invest this quaterly
Please suggest some options. Thank you
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8 replies on this article “Buffer Money – Best Investment”
I will also suggest buying Gold-ETF on your own every quarter (as you dont know the amount) , provided all your other goals are taken care of !
Depending upon your MF portfolio, I will advise you to buy either a multi-cap fund like reliance RSF/ HDFC equity or a small/mid cap fund like IDFC premier equity / icici discovery / reliance growth. Just buy them as a lumpsum, whenever you get the extra money. In this way, you will maximize the earning potential of your extra money.
Kindly let me know who is offering Gold ETF in SIP mode?
FUndsIndia gives that
I suggest to invest this money in Gold ETF via SIP mode. That will not only diversify your portfolio but will also you liquidity whenever you need your money.
Hope it will help you.
Park your funds in a Debt fund and do a systemic transfer to a well rated Large / Mid Cap fund. Keep investing lump sum every quarter in the debt fund account.
I can park this money for a period of 1 year to 3 year and I am okay to take high risk since this is buffer money after I have done all my required investments
Please share on how long you can park this buffer money and the risk that you are willing to take.