Investing for Marriage fund

POSTED BY Electro K ON February 6, 2013 11:09 pm COMMENTS (4)

After goin through jagoinvestor I decided to sell off my LIC ULIPs and have a lumpsum of 7 lacs in my savings account. I would like to earmark the amount for my marriage which would be somewhere between 2 to 3 years. I am planning to invest most of it in FD as it is a non negotiable goal.However, I fall in the 2nd tax bracket and hence I feel that I should be looking at other avenues too. Where else should I invest? How much should I keep in FD? Out of the sum of 9 lacs, I was thinking about investing Rs 1 lac in HDFC Short term opportunities at one go & Rs 1 lac staggered over 4 months in HDFC MIP. Please let me know whether you think this would be a good decision.

4 replies on this article “Investing for Marriage fund”

  1. Electro K says:

    Thanks Ashal 🙂

  2. Dear Electro K, as all the money is to be used for Marriage only & nothing else & time frame is not certain (may be 2Y or may be 3Y), I ‘ll invest my own money in MIP like HDFC MIP LTP or Reliance MIP. As the holding period is more than 1Y, the impact of indexation ‘ll save a good amount of tax & the Eq. component may provide the kick in return but this is also a risky option as compare to pure debt fund due to this Eq. component.

    Regarding FDs, in general dear FFC meant for Bank FDs as you had asked your question that way. Keeping your tax bracket in mind & the liquidity problems, I w’d not invest my own money in Corp. FDs.

    Thanks

    Ashal

  3. How much invest in FDs depends on your risk appetite. If i had 9 lacs and a goals such as yours I will invest 70% in FDs and rest in a mix of liquid funds and MIP.

    Liquids fund because of lowest risk although the investment horizon is much longer than the maturity if the debt investment.
    The idea here is not to earn high returns. You already have a good enough sum. You need to minimize your tax outgo.

    I will not choose HDFC Short term opportunities. A liquid fund with low expense ratio and decent track record should do for me.

    1. Electro K says:

      Thanks a lot Free Financial Calculators.

      By FDs, do you mean to include Corporate FDs as well?
      If yes, then please suggest me the factors to consider before investing in Corporate FDs.

      Also can you suggest me some good liquid funds too?

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