Where and How to invest 1 lakh for 12 – 15 months ?

POSTED BY nsabhyankar ON March 11, 2014 11:18 am COMMENTS (8)


I have 1 lakh rupees to invest for a time period of 12 to 15 months. I will be using this amount as a down payment for a home loan. However, the time horizon is not exactly known since it is linked with the government decisions on the Pune metro.

How should I go about this? Should I consider FMP’s? How do I select the appropriate instruments to minimize tax? Capital preservation is important here but I am ready to take moderate risk.




8 replies on this article “Where and How to invest 1 lakh for 12 – 15 months ?”

  1. ashalanshu says:

    Dear Nsabhyankar, in case of FMPs, no guiding factor is there as no past performance is there. For debt funds, you need to check the past performance to draw your own conclusion from it.



  2. nsabhyankar says:

    How do I go about deciding which FMP’s or debt funds to invest in?

  3. ashalanshu says:

    Dear Nsabhayankar, ok.

    Go ahead.



  4. nsabhyankar says:

    I am not putting in all the funds available in the FMP. I can (and will have to, in any case) use the liquid fund corpus and the FD’s too. I also have some cash stashed away in my MaxGain account. I will have to withdraw from there as well. Otherwise I can’t hope to make a down-payment on a property in Pune. 🙂

    So, in a nutshell, I am ready to forget this amount for the 13 or so months the FMP will take, if it gives me better post tax returns than FD or liquid fund.

    Another motivation is learning about the spectrum of debt funds. so far, the only debt component I have is EPF and PPF. I wish to learn about and profit from other debt investment avenues.

  5. ashalanshu says:

    Dear Nsabhaynkar, what about liquidity of your money in FMPs?



  6. nsabhyankar says:

    Thanks Aryan and Ashal,

    I already have a few FD’s and don’t wish to add any more at this time. I am looking for more tax efficient options.
    Also, I have a folio with Quantum where I have set up an STP from Q liquid fund to QLTE. I have made additional purchase in the liquid fund.

    Now, I want to consider FMP’s and short term or bond funds. any comments and suggestions?


  7. ashalanshu says:

    Dear Nsabhayankar, please invest the amount into Liquid fund of your choice.



  8. aryan says:


    do FD .

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