6 Best Short Term Investments Options for 2013

Best Short Term Investments Options for 2013

6 Best Short Term Investments Options for 2013

Several investors would have surplus money which needs to be invested for short term of 1 to 3 years. There are various good options available for such short term investments.

Need for short term investment

Short term investment option arises when we have surplus money and there is a pressing need of money in the short term. The pressing need could be either for children education, down payment for housing loan, down payment for buying a car, money required for setting up a business etc., The need can be anything, but parking the money in good short term investment options would increase the value of the money.

6 Best Short Term Investments Options for 2013

Some of the good short term investments options are

1) Bank fixed deposits: Invest in top bank fixed deposits for short term to get higher returns. Indian banks are providing  interest rates of 8% to 9.25% per annum. Currently below are the top 5 bank fixed deposits which are offering highest returns for the 3 year period.

Best Short Term Investments Options for 2012 - Bank Fixed deposits

2) Investments in corporate/company deposits/NCD’s: There are various corporate companies which are offering fixed deposits / Non-convertible debentures (NCD) with attractive interest rates. The interest rates are ranging between 9% to 12%. However when you are investing in NCD, see for the SECURED NCD to ensure your capital is safe. Top 5 corporate fixed deposits are enclosed below.

Best Short Term Investments Options for 2012 - Company/Corporate Fixed deposits

3) Mutual funds – Large cap: Large cap mutual funds invests in blue chip companies for long term. However these can be invested for short term investments of 3 years period as only little downside is expected in case of share market downtrend. In the last 3 years period, they have offered 10% to 13% annualised returns. Below are the top 5 large cap mutual funds which you can look even for short term investments.

Best Short Term Investments Options for 2013 - Large cap mutual funds

3) Mutual funds – Ultra short term: These mutual funds invests majority of the portfolio in fixed deposits and short term investment options. Investor can invest in such ultra short term mutual funds for the period of 1 to 3 years period. The returns in the last 3 years are 8% to 8.5% per annum.

Best Short Term Investments Options for 2013 - Ultra Short Term Mutual Funds

5) Mutual funds – Debt funds: Debt mutual funds invest majority of the portion in debt related instruments like corporate deposits, NCD’s etc. These are generally offer attractive returns when interest rates are declining. Invest in debt mutual funds to get benefitted if you are looking for a investment period of 1 to 3 years. The returns in the last 3 years are 8% to 10% per annum. This is one of the good short term investment options.

Best Short Term Investments Options for 2013 - Debt Mutual Funds

6) Investment in gold: This is my favorite investment option for short term as well as for long term. Investment in gold has given 24% annualized return in the last 5 years period. There are various ways to invest in gold. You can pick-up your choice and invest in gold.

Conclusion: Short term investment arises when you have pressing need of the surplus money in the next 1 to 3 years. Invest in best short term investment options to get benefitted to the maximum extent.

Readers, do you invest in any of these best short term investment options? Please give your comments

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Best short term investments


Article by Suresh

Suresh KP i.e. me have written 500+ articles on this blog. I love doing analysis and identifying the Best investment options.


  1. Brian says:

    Hi Suresh, I would like to invest around 5000 pm in SIP’s and also would like to venture into the share market, however have no knowledge of the same. What would be my best plan of action, I am looking to invest for periods of 3-5 plus years. Please Advice. Thanks.

    • Suresh KP says:

      Brian, Entering in mutual funds and stocks for 3 to 5 years would be little risky. However you can still try and invest in balanced funds for a period of 5 years.

  2. Bishmeet Singh says:

    Hi Suresh,

    I am totally new with these terms. Only i know is that i can invest 3-5k pm Yet. I want to invest this amount for 2years atleast.

    please suggest me a best way to invest so that i’ll be able to get good return.


    • Suresh KP says:

      Bishmeet, Don’t worry. You can invest in mutual funds through SIP. 1) Open MF account with ICICI direct or fundsindia. com 2) Subscribe for 2-3 funds to start with by SIP 3) Invest in ICICI focussed blue chip fund, HDFC Top-200 and HDFC Balanced fund. Remember to invest for 8 to 10 years minimum to earn 13% annualised (approx) return

      • Dinesh Shirvaikar says:

        I don’t think he should open an account with ICICIDirect because the charges are too high. FundsIndia might be a better option and more versatile. Also with ICICIDirect, there are reporting issues. I am yet to get a fully correct statement from them for whatever period u consider.
        Still better, he needn’t open an account with any of these people but invest directly. It might take slightly more effort, but would be worth it over the long term due to the charges saved. After all, once u set the SIP rolling , u don’t need to go and check every month. Besides u will get a statement every month via email, so keeping a track shouldn’t be a problem, if u give a common email id to all these MFs.

  3. T.BHARRADWAJ says:


  4. Partha Sen says:

    Dear Suresh,

    I want to invest 10 k to 25 k for 3 years. what is best option and where should I invest riskfree with maximum benefits. I saw a link ( iForex add) – invest 10k and get 5k in less than 5 days. Tell me somethings about it also.

  5. Chaitanya Patel says:

    Hi Suresh,

    Thanks for the amazing articles. However, I am looking to invest Rs25000 per month for a period of 2 years. I am looking for higher returns and lower rish scheme. Can you please suggest?

    • Suresh KP says:

      Hi chaitanya, if you want to invest for 2 years (short term), you would have limited options like Bank FD or Post office saving schemes. Try investing for 3 to 5 years atleast. Pls let me know

  6. Ram says:

    ~~I am working in middle east country. I have saved 50 L in last 4-5 years. Now same are in FD for various banks which gives interest 9%.
    Should I go for new house which will cost me 1 Crs or I should go for various mutual funds ?

    If I take house which can be useful in my retirement but now of not useful.

    I am not clear because once I invest in house I will not have any money in bank.

    Pl advise.

  7. sreedhar says:

    Hi Sir,

    I am investing monthly 1700 rs in Kotak Smart Advantage Plan from 18/06/2009. but i didn't see any returns from this plan
    can you please suggest me wether i can continue with this plan or please suggest other plan for good returns



    • Suresh KP says:

      Hi Sreedhar, This is ULIP plan and there are ULIP charges, admin and fund charges etc., You cannot expect any returns in first 5 to 7 years and even the fund value would be less than what you paid. You should check the status and come out of such schemes. Invest in mutual funds or bank FD and you can enjoy returns.

  8. Abdul Rahman says:

    Hi Suresh, 

    I am planning to invest Rs.50,000 as short tem investment. May i know which is best option with minimum risk and good return.

    • Suresh KP says:

      Abdul, It depends on the tenure. If you are looking for less than 1 year, just invest in bank FD or post office Term deposit. However if you are looking for 1 to 3 years, you can look for debt funds or balanced mutual funds.

  9. Punit Sharma says:

    Hello, thanks for doing a wonderfull job in public awareness.

    I am an NRE and have been investing 1lac every year in HDFC endowment supreme suvidha (ULIP) since July 2009, 70% in Growth Fund II & 30% in Equity Managed Fund II.

    Last 4 years cummulative return is -10%, should I continue investing in since it is 11 years investment policy with 12th EMI paid by HDFC life. My objective is to earn higher annualised ROI than 11%.

    Any other partially secured/assured investment suggestions for higher ROI ?

    Thank you very much in advance!!

    • Suresh says:

      Punit, If I remember correctly, Sep-2009 IRDA has guidelines and new ULIP guidelines came into existence. Anything prior to that was a BIG mess and insurance companies have charged high ULIP charges. I generally advice to check for 3-4 years performance and take a final call in case you do not get even bank FD returns.My suggestion is to have one more review from your end and exit. All ULIP’s have this problem. You can invest in better investment options like PPF which is safe and you would get assured tax free returns of 9%. You can also invest in MF’s with some risk.

    • Dinesh Shirvaikar says:

      My personal view is that a sensible person should not buy ULIP ever. For protection which is the real meaning of life insurance, buy a term plan. And for investments of any sort – long-term medium term or short-term go for the appropriate type of mutual fund (yes, they exist for all durations with varying risk profiles).And u can exit out of them when u are unhappy with their performance, at no extra cost unlike a ULIP. However, if u have bought a ULIP, even if by mistake, u should continue it till maturity unless u are willing to let go of a reasonably large sum of money. This is for several reasons:

      1. If u let go after the first few years, most of the charges have already been taken out with very little investment of your money. So most of the losses are already factored in. Whatever u invest in the later years, most of it will be invested since charges will be low (again low is a relative term and should be considered accordingly). And chances of equity investments made in the last 2 years coming good are quite reasonable if u go by the track record of Indian markets.

      2. If u let go after the first few years, not only do u lose the advantage of a better gain in the coming years (as explained in point 1) but u also stand to lose most of what u invested since u have already paid a large part of what u invested as charges. So it is a double whammy.

      So look for options whereby u can pay the minimum required to continue the plan and hold tight till maturity. That's the only way u will get anthing out of a ULIP.

      And by the way if u want an annualized return higher than 11%, equity is the only option for u. So my personal reco would be to check for the minimum amount that u need to pay to continue the ULIP and hang on till maturity. You may get close to 11% if our markets hold.

  10. Harish Balakrishnan says:

    Hi Suresh,


    Good Day. Thanks a lot for your analysis as it is helping people like me a lot. Need your assistance here. I would like to Invest 1 Lakh rupees as short term investment. I am ready for small risk. I would also need to be able to withdraw the money whenever needed. My Marriage might be due with in the next 6 months , if yes, then I will have to withdraw this money. 

    Thanks in advance! Good Day!


    • Suresh KP says:

      Congrats Harish. You should consider only liquid or ultra short term mutual funds if you want to invest for very short term of less than 6 months. These can offer 3% to 4% returns in 6 months period. You can get your money within 3-4 days after your redemption

      • Harish Balakrishnan says:

        Thank you Suresh. I had also come across I-wish (Flexible RD) from ICICI. The Intrest rates for 6-11 months is 7.75 % and on premature withdrawl for less than 1 year the penalty is 0.50%. Request you to please advise on this.

        • Suresh KP says:

          Harish, You should note that 7.75% is per annum. Almost all banks are offering highter interest rates on RD. Refer our article on I-Wish and its features and to whom this is suitable better.

  11. Aditya says:

    Dear Suresh,

    I have 1lacks in my saving account and i want to invest this amount (for 1-3 years) in proper manner where i can get more returns also risk factor should not be too high.

    please suggest some ideas other than FD and RD in banks

  12. Hemang Kanabar says:


    I would like to invest around 25k per year in mutual funds for 3-5 years. Kindly help me with details of the best performing plans.





    Hemang Kanabar

    • Suresh KP says:

      Hemang, If you want to invest for short term in mutual funds invest in debt funds or balanced mutual funds. You can look for debt funds like Templeton India IBA fund or balanced funds HDFC balanced fund

  13. Hande says:

    Hi, I was investing in PPF every year. It is getting matured in April 2014. I would like to invest entire amount with low risk and regular monthly income plan. Pl suggest, where I have to invest? Amount will be apx 11 lacs. Thanks

    • Suresh KP says:

      Hi Hande, Since you might not be looking for tax saving option u/s 80C, you can invest in bank FD or post office saving schemes for low risk option to get montly income plan. If you want to take small risk, you can look for Top-MIP mutual funds

      • Dinesh Shirvaikar says:

        Hi Suresh,

        MIPs, though with a good mix of equity and debt for a conservative profile, have been a disappointing lot over the last few years. The supposed equity kicker has only kicked the returns lower and not the other way round !! And the main culprit appears to be the very high expense ratios these schemes charge. For a scheme with > 75% in debt, there is no reason to charge fees comparable to equity mutual funds. The result is there for all to see. Pure debt investments have performed much better than these MIPs, and that too without any risk. So there u have your choice.

        Of course that doesn't mean that MIPs will not perform well in future also. If the equity market picks up, these could outperform debt instruments at current levels.

  14. MANISH SINGH says:


    • Suresh says:

      Manish, Liquid funds/money market funds are also rated by Crisil. e.g. I have invested in liquid funds (which are short term funds) like Peerless where Crisil rated as rank-2; IDFC Cash fund Rank-1 etc. Liquid funds are meant for short term investments

  15. Gaurav says:

    Hi Suresh,

    Hope you are doing good!!

    I am a 26yrs salaried person, started investing in 2012. 1st Investment: LIC Jeewan Anand (26K/Anum for 15 Years), 37K in ELSS, 49K in Rajiv Gandhi Equity Scheme and 10K/Month in MF. Please suggest me some other investment products to invest 5-20K/anum with low maturity period and that have the benefit to withdraw within 1-3 years anytime. 


    I will appriciate your support.


    Gaurav Kr. Saini

    • Suresh says:

      Gaurav, The options would be limited when you say 1-3 years time frame. You can invest in bank RD (9% returns) or short term debt funds like Peerless Short term fund (Crisil Rank-2 – 10.7% annualised returns in last 3 years) or UTI Short term income fund (Crisil Rank-3 – 10.4% annualised returns in last 3 years). The returns indicated are pre-tax. Based on your tax bracket, your net returns would differ. BTW which schemes have you invested in RGESS for 49K. I would like to know as this scheme has come just 8-9 months back. 

    • Dinesh Shirvaikar says:


      Let me correct u here. You don't invest in a life insurance product (other than probbaly a ULIP, which are anyway not worth it). Insurance is meant for protection of dependents should something happen to the insured who usually is the family bread winner. If u think that u have invested in a life insurance product, then chances are that u have been mis-sold something or even worse been taken for a ride.

      If u want insurance, go for a pure term product. For investment, look at some good MF products – Suresh has written plenty about these, u can select any of them.

  16. Rakesh says:

    Hi Suresh,

    I want to invest 1.5 Lakh rupees in mid term as well as in long term. Suggest me, which schemes are good.

    • Suresh says:

      Hi Rakesh, If you want to invest for medium term of 2 to 5 years, invest in Bank FD or debt mutual funds like SBI Dynamic bond fund or IDFC Dynamic fund. For long term of 5 to 10 years, you can invest in good mutual fund schemes like ICICI Pru bluechip focussed fund or Franklin India blue chip fund or Birla SL MNC Fund. These are some of the good funds.

  17. john@itcoman.com says:

    Hi Suresh

    I am an NRI having 15 lakhs to invest right now. Do i invest in gold? What are the other options?



    • Suresh says:

      Hi John, don’t invest lump sum invetments in gold. What happens if this comes down. You may regret at later point of time. Instead, invest in ultra short term mutual funds and do “Switch” to equity mutual funds or do Systematic withdrawal Plan (SWP) and invest in Gold ETF’s.

  18. sathishkumar says:

    Hi Sir,

    I wish invest monthly Rs.5000 to have good money value in returns for  3, 5, 10 yrs.

    Pl suggest where can be invested

    • Suresh says:

      Sathish, Please inform what is your risk appetite. If you are low risk taker, you can go for Bank FD or post office schemes. 2) If you are moderate risk taker and want to invest for 3 to 5 years, invest in debt funds like SBI Dynamic bond fund or IDFC Dynamic bond fund etc. 3) If you are risk taker and want to invest for long term of 10 years, you can invest in diversified and large cap mutual funds like ICICI Pru focussed blue chp fund or HDFC Top-200 or Birla SL Front line funds

  19. Premkumar says:

    Hi Suresh

    I have just started to invest 16500 per year in BSLI Vision(Birla Sun life Insurance) .Could you please suggest is it good investment plan .

    • Suresh says:

      Hi Prem, This is like any other insurance-cum-protection plan. The returns would be anywhere between 3% to 5%. I personally do not prefer to go for such plans. You can consider taking term insurance and invest balance in other investment options.  If you want a detailed review, I can do that. Just put a request on “Suggest-a-topic” so that I can have detailed review in coming weeks.

  20. MARIE says:

    Hi Suresh,

    Just wanted to ask if i go for tax saving FD with ICICI 5 years lock in, can i show this FD as part of my investment every financial year for the next 5 years or will it only work for this coming financial year when i declare my investment.

    Thanks & Regards,


  21. Ronak Bhanushali says:

    Hi suresh ,

    Your dedication towards this is commandable , i need small favour as i Invested 25k P.A for 5 yesrs in HDFC youngstar super plan is this plan give me a good return in future  ….. Apart from this kindly suggest various ways to invest in Gold …. your replay will be appreciated …..

    thanks .

  22. Bhanu Vikrant Singh says:

    Dear Suresh ,

    I am having 40k rs with me i want to invest this money for one year.

    Please advise me where should i invest in order to get maximum returns i can take moderate risk in my investment.


    Thanks n Regards


  23. Lakshmi says:

    Hello, nice to meet you here.  You are doing great job in assisting the general public for attaining their financial goals  safely. I want ur suggestion about renewal of my current FDs with Unitech and Ansal and Jaypee, which are due next month.  Of course, interest rates are good, but not sure about the above said companies recent financial performances.  I saw several FDs principal  refund amounts concerns online.  Especially, Unitech – they have sent me the interest component cheque already; I heard they are not paying the principal amount back in a timely manner.  Sometimes not even paying back also.  Is it true? Have you heard any such feedback from any of the investor online?


    Based on your guidance, I want to decide about the renewals of FDs with those above 3 real estate entities.


    Many thanks for your time and effort. Rgds, Lakshmi. 

  24. Nilesh says:

    Hello Sir,

    I am a salaried person with 20k salary in hand.I am a married person.Wife is housewife and daughter 5 yrs old.I have invested my money in equities but they are in loss. I want to know that as a salaried person with 20k salary, where should he be investing? Should we take risks at this stage and invest in equities only?I have started SIP in Nifty Bees.But overall i dont understand which stocks to invest and which not. So in that confusion land up in investing in wrong stocks.I am willing to put 5k every month.Kindly advise investment options.

    • Suresh says:

      Nilesh, Stock market investments is a game. You may win sometimes and you may looose some times. But try to invest in safe investment options and mutual funds first. Once you gain confidence, you can move to stocks. To start with invest in HDFC Top-200 or FT India blue chip funds which are consistently providing 20%+ returns in last 10 years.

  25. Dinesh Shirvaikar says:


    For such a long period, equity is the best option and has been proven to provide inflation-beating returns. If u invest in a few well-diversified equity mutual funds, getting 11-12% annualized return over this period shouldn't be a problem at all. Refer some of Suresh's articles on diversified equity mutual funds which have done well over the years.

  26. yogesh says:

    Hi suresh,

    Thank you for the detailed responses and answers. I have a question, i need to invest money for short term (3 months). Is Pramerica Fixed Mutual fund (FMP) is good option? I heard that we will get around 9% if we invest now?

    If we want to invest in FD, which bank shall i prefer? Nationlized banks provides less interest as compared to other banks but it is safe option. right?

    Also what would be the options for 1-3 years, 3-5 years and 10-15 years (i am also interested in some investment in insurnace)?

  27. rafi says:

    Dear Bro,

             my Age is 25 and i earn Monthly10,000rs/…I married this year only and i have 2lakhs in my hand ..i would like to invest that amount in a bank and i want returns monthly with maximum intrest…which bank is better to invest?i want to double the investment in a span of 2-3 years..please guide me ……………

    • Suresh says:

      Hi Ravi. Thanks for calling me as brother. Please check this list where I have written for people like you where you want monthly returns.http://myinvestmentideas.com/2013/08/best-investments-to-get-monthly-or-regular-income/

    • Dinesh Shirvaikar says:


      Your requirements are contradictory and may not be possible. If u want monthly returns with maximum interest and invest in bank FDs (which is the right way for this requirement), it is impossible that u will be able to double the investment in 2-3 years time considering the prevailing interest rates in banks. In fact, I doubt if there is any instrument thru which u can double your money in 2-3 years. You will need several things to be favourable at the same time – a booming stock market, selection of the right stock to invest in etc. And at this time, this doesn't even look remotely possible.

  28. Atul says:

    HI Suresh,

    My net salary is 22000 and i want to make some safe investments. i already  have a recurring deposit of 5000 in axis bank for 24 months. Could you please guide to invest another 5000 ( upto ) in some good investment schemes so that i can earn out of my savings.

    Thanks a lot in advance. Looking forward for your opinion


    • Suresh says:

      Atul, Bank FD’s and Post office term deposits are always safe and they provide risk free returns. If you can take some risk, you can invest in debt mutual funds like SBI Dynamic bond fund or IDFC Dynamic bond fund. It would involve small risk. If you cannot take such risk, choose another RD where you can get highest returns. BOI, Bk of Maharastra and IDBI Bank etc. offer 9%+ returns on RD account

  29. Ashutosh kumar says:

    Dear suresh san
    please advise fixed deposit minimum time benefit
    and month plane investment maximum benefit
    Ashutosh kumar


  30. Ajay pandey says:

    Hi suresh,
    I want to invest 1ok per month.where I invest with good return and minimum risk.my age is 26 and I am working in IT com.

    • Suresh says:

      Ajay, Invest in diversified and large cap funds such as HDFC Top-200, Birla SL Frontline, ICICI Pru focussed blue chip fund, UTI MNC Fund and debt funds like HDFC Prudence etc.,

  31. Kamal says:

    Dear Suresh,

    I am NRE and HDFC bank has a Rupee max plan for NRE customers where minimum investment for FD is 25, 00000 (25 lakh) for tenure 1 -5 years. They are paying very attractive interest .I would like to take your advice about this investment is safe.

    • Suresh says:

      Hi Kamal, As per product features it indicate that you could earn high rates than FCNR/NRE FD scheme. The amounts are repatriable, hence I feel it is good if you are looking for safe investment option. If I am in your shoes, I would divert some funds in to such good FD scheme and also invest in diversified or large cap funds like HDFC Top-200 or Birla SL Frontline etc. so that I would not be too dependent on FD itself. I know there is a min amount of Rs 25L. But check what other FD schmes are offering for you if you invest for lower amount than this. Based on that you can take decision.

  32. Debashish Dey says:

    Hi Suresh

    Small guidance required.

    In the year 2011 all my investment was withdrawn for my son treatment but could not save the life.

    Due to financial crisis I have taken 3 Lac loan in the year 2013 and Rs.8700 EMI is paying every month from my salary. This loan will be close in the year 2018.

    I am unable to save any money now and I am loosing in Income Tax Rs.2500/- every month. My gross is Rs.51000/- I want to do tax saving investment for very small amount for 1 year for good return.

    Please guide which scheme will be ideal for good return for 1 Year Investment.

    Debashish Dey

    • Suresh says:

      Hi Debashish, Sorry to hear this. There are no investment options for 1 year where you can get tax benefit. You need to atleast invest for 3 years in Equity linked Saving schemes (ELSS) mutual funds. NSC, you need to invest for 5 years. Even bank tax saver FD you need to invest for 5 years. 

      • Mubeen says:

        Hi suresh,

        Hope u reember, i had asked some investment plan keeping Islamic laws in mind about intrest and all. I have not yet recieved any tips or ideas.


        Please revert

        • Suresh says:

          Mubeen, I remember, not able to take out time to talk to your religious person who can give me exact inputs on the definitoin of “Interest” where you cannot invest. I could talk to some people, but not getting confidence. Do mail me your contact no to my mail ID suresh@myinvestmentideas.com so that I can contact you and may be you would be able to able with this definitoin.

  33. Rajesh says:


    My brother who is a handicap person who cannot go for any job and my father left Rs.500,000 for him when he died last year.  I want to know is there any good scheme where he can invest this amount and get monthly income from that.

    I am looking for Rs.7500 to 8000 from that investment.



    • Suresh says:

      Hi Rajesh, You can invest in several optoins. But looking at the situation, you should invest only in safe investment options like Bank FD or Post office Saving schemes. You can expect between 8.5% to 9% returns here. Rs 5L would fetch you up to Rs 3,750+ per month (pre tax)

  34. Sirisha says:

    Hello Suresh,

    I really appreciate the way your guding people regarding the various invest plans !!

    I want to save amount for short term. I earn a decent salary and would be able to save 5-6 k per month.

    Also, please advise on any money back policies. I can invest in money back policies even for 10 years.


    Thank You


    • Suresh says:

      Sirisha, You can invest in money back policies, but they would provide only 5% avg annualised returns. instead you can deposit in bank FD where you get safe returns of 9% (pre tax). If you are looking for short term , my advice is to invest in debt mutual funds or bank fd or liquid funds or ultra short term funds. All of them have specific features. You should know them before you invest.

  35. Arup says:

    Dear Suresh,

    In case I were to choose between ICICI Pru Retirement Income Solution and Guaranteed Savings Income Plan (objective – long term capital appreciation for lumsum returns) which one should I choose and why ? Thanks A.K. (age 49+ male, married, salaried)

    • Suresh says:

      Arup, Both are insurance-cum-investment options. I am yet to do these product analysis in deeper. But all such products provide 4% to 5% returns per annum only. I would prefer buying a term insurance plan and invest balance in mutual funds or atleast bank FD/RD.

    • Dinesh Shirvaikar says:


      I fully agree with Suresh's views, It is never a good idea to mix insurance and investments, no matter what anyone says (I am yet to figure out who really benefits from ULIPs). You will only end up without adequate insurance as well as inadequate investments. As Suresh says, it is best that u go for a term plan (preferably on-line to save on costs, otherwise, there is absolutely no difference) for insurance and a set of good MFs for investment. You can do a simple arithmetic in Excel for the premiums paid vs investing the same mount in a term plan and MF, and check the results for yourself.

      Also, since u say that your objective is objective long term capital appreciation for lumsum returns, whatever made u go to/consider an insurance company's products in the first place? Please don't be misled by the tall promises made by any insurance company's agents who for the most part are only interetsed in the fat commissions they get by selling such products, irrespective of their fitment to the prospect's requirements.

  36. Samrat says:

    Hi Suresh,

    I am Samrat & been working now almost 11 years. The time I invest at my work is too much & hardly find time to spend with family. Yes the money I earn from my present job is decent enough but social life is not there at all.

    I have decent amount of money to invest in, problem is – confussion where to invest in? My job is related to food & beverage industry & a bit of guest relation. What I want is to do something my own where I can make a decent amount..say 50-60k a month(like I am making now from my job) & not spending 12-15 hours every day at work..

    I can do internet business infact I started few months but was a bit confusing & I could not find time after my heavy work schedule.

    I would appreciate if you can help me with some ideas..

    I really appreciate your ideas and your work so far..

    Best regards



    • Suresh says:

      Samrat, I hear what you say. Even I was like that. But a simple thought for 3 months changed my life. I used to keep asking myself, what can I do differently today which can change my life. I asked this question to myself for more than 3 months and every day I tried various things. I tried forex trading, futures trading, ebay selling, writing online articles, etc. Finally I started this blog. Apart from spending what I like to do, I get good money too. I cannot exactly tell you what you can do it, but this thought hopefully enable you to explore “to do what you like”. 

  37. neha pa says:

    hello mr suresh

    i ve two kids 10yrs and 7 yrs.  for their education and future i need to invest.  but i have no clue what to do about it.  pls help me in that for elder child after 8 yr  i will be needing good amt of money for her education.  and for small on i will be needing it after 10 yrs.  but i am looking for investment which will help them in education and in future life also. i can invest 7000 rs per month


    neha pawar 

    • Suresh says:

      Neha, Invest in a combination of investment options like Mutual funds and Bank FD/PO FD schemes. For mutual funds, you can invest in Reliance equity opps fund, ICICI Pru focussed fund, HDFC Top-200 fund, HDFC prudence fund etc. 

  38. Prakash says:

    Dear Mr. Suresh,

    First of all, let me thank you for your excellent support to the amature investors like me.

    I would like to invest around Rs 4Lakhs each in my daughters name -elder one 18 years for 5 years & younger one who is 14 years for 10 years. Elder one has a PAN card.

    What are the safe and best options at this point?


  39. Alex says:

    Hi Suresh,

    I'm getting 1.58 L per month and I have below goals that I want to achieve:

    – I need 50 L after 15 years for Child education.

    – I need 50 L after 25 years for my kids marriage

    – I need 4 cr after 30 years for my retirement. 

    So far I'm not doing anykind of investement on any MF. And I want to create an emergency fund of around 6 Lakh with in 10 months. Every month I can invest 30 K, so please help me to create my porfolio and how I can achieve my goals and what kind of funds I have to buy or start SIP's.

    Many Thanks..


  40. Raman says:

    Dear Suresh,  I must applaud you for the yeoman service that you are doing for the investor community – especially amateur investors!!  Keep up the good work..which is balanced and impartial..  I am  48 years old and currently in Africa and will be returning to India later this year and am not sure of a placement.  Hence, I need decent returns on a monthly basis on my retirement fundwhich will be around USD 70K.  Please suggest me some safe and decent returns for this investment.  Thanks in advance.  Raman

  41. Bobby says:

    I am 22yrs old and in the merchant navy. Should I open a ppf account.and should I take a lic insurance for 20 yrs.

    • Suresh says:

      Bobby, What is your objective? If it is only taking insurance, consider taking term insurance policy. If your investment objective is for tax savings you can invest in PPF, ELSS mutual funds or NSC. However if your objective is for long term appreciation, you can invest in variety of options like stocks, mutual funds, bank FD or post office schemes. What is your objective ?

  42. mayur says:

    I am a sailor and i want to invest in axis bank mutual fund. can you advise me if it is safe to invest there?


  43. Mubeen says:

    Dear Suresh,

    I am looking for investment for 5 years per month investment of 30k to 35k. Kindly suggest some good investment options. I am bit particular about interest(as in our religion interest amount is not allowed). So kindly suggest some other investment options where interest issues is not coming into picture.


    • Suresh says:

      Mubeen, I am particular about this topic. I do not want to write something which it may not be permitted in a religion. Let me check with a few friends of your religion and analyse and post an artilce next week.

  44. Janardan says:

    Hi suresh

    I wish to go for MIS sort of scheme where i can have regular monthly return(monthly regular income plan).

    which option should i choose to avail 12-13K/month…




    • Suresh says:

      Janardhan, You can consider Post office MIS Scheme or Bank FD (quarterly interest pay out you can opt for) and MIP Mutual funds. in MIP mutual funds you may not get every month, but you would get regular incomes through MIP which can be higher than bank FD. 

  45. Shailesh says:


    I am currently in the US and would be returning in Mar 2013, after which I intend to buy an apartment in Bangalore. Can you suggest what are the best investment options such that I can redeem my money by March and yet get a decent return on my investments? Basically, I am looking for ultra short term investment options.



  46. Kathy says:

    Suresh, Can u give me reasons for investing 25% in 3 month in Equity, 25% in less than 3 years in Real Estates & 50% in less than 10 years in Fixed Deposits? Also, Can you suggest me a name for my company?

    • Suresh says:

      Kathy, Sorry, I could not understnad your question. You are askin for reasons ? You are asking for suggest a name for your company ? 

  47. Kathy says:

    Hello Suresh,
    I have a client of 36 years old having 2 kids – A girl studying in sr.kg & boy studying in 3rd std. He works in bank & earns Rs. 150,000 per month. His wife earns Rs, 50,000 per month. He has a home loan (EMI) of Rs. 40,000/- & Car loan (EMI) of Rs. 12,000/-. How can he invest Rs. 1 Crore for 25% in 3 months, 25% in less than 3 years & 50% in less than 10 years?

    • Suresh says:

      Kathy, 1) 3 moths – He can invest in bank FD or liquid mutual funds or ultra short term mutual funds (returns between 5% to 9% per annum) 2) 3 years period, he can choose bank FD, debt mutual funds (Returns between 9% to 11% per annum 3) 3 to 10 years time frame, one can invest in diversified mutual funds, balanced mutual funds, debt mutual funds, post office saving term deposit, bank FD etc. Returns between 9% to 15%)

  48. sonal says:

    Good information. I am not sure  but if investment is for 1 – 3 years period  then I think investing in real estate ( definitely with reputed builder) may a good bet  There is already a concept on investor flats in major cities in India.

  49. Ankur Bhandari says:

    Any long term ( 15 years+ ) options you can suggest ? I need to plan for my childrens future and need to ensure the returns are atleast 9-10% fixed with zero risk. Have played a lot with market risks and have lost faith in market linked products.

  50. Rohan says:

    Dear suresh , i have an amount of rs 50000 and i want to invest it … Where can i invest it and minimum how much return can i get it monthly …

    • Suresh says:

      Rohan, since you posted on short term options, I am assuming you want to invest for short term. For short term to medium term invest in Bank FD or debt mutual funds. You can expect 9% to 11% in these investment options

  51. Aki says:

    Hi Suresh,
    What’s your suggestion child plans.

    • Suresh says:

      Aki, I do not ask anyone to do seperate child planning. Take Term insurance plan which secures your family + children education + daughter marriage (if any) and invest your surplus in stocks, mutual funds and other investment options. There are several insurance and banks offeirng children investmetn products where the returns range between 4% to 8% and I feel they provide inadequate returns.

  52. jagbir says:

    I want to invest Rs 70,000 pm for next 3 years and accumulate 30 lakh for daughter's marriage in year 2016. Please suggest investment plan. Regards

  53. Janardan says:

    Hi Suresh

    I have invested in hdfc balance fund(D) option around 3 lacs Rs.I have recd the dividends two times too.Currenetly NAV of the same is @23.35Rs(valuation is close to 2.42 lacs).

    Kindly suggest should i stay invested in the same fund as i can wait for another 3 yrs.





    • Suresh says:

      Janardhan, HDFC balanced fund has given 13% annaulised returns in last 5 years, 5.5% returns in last 3 years. I do not know why your value has declined from Rs 3L to Rs 2.4 L after dividend. It should atleast remain at Rs 3 L. Something wrong. Please check and tell us the exact date of the purchase.

      • Janardan says:

        Hi Suresh

        Details are as below:


        Date of Purchase is 22/06/2011..Folip No..7302598/44


        HDFC Prudence Fund-Dividend




        Kindly suggest:



        • Suresh says:

          Hi Janardhan, This is a avg fund in balanced category. It is underperformer. You can look for better funds like HDFC Balanced fund or ICICI Balanced fund in this category.

  54. Paras says:

    Hi Suresh,

    I have 8k per month to invest for next 3 years. I have no idea about mutual funds hence not sure how to go for it, what's the risk involved and what are the benefits. I am looking more on short term investments as of now.




  55. Biswarup says:

    Hi Suresh,

    I’m new to this portal,read almost all of your suggestions,and really appreciate what you are doing.
    My questions are :

    I’m a low risk taker.
    I want my money to give me a good raise after 3 to 5 years.
    I don’t have any ideas about MF,or any other funds.only belive in Bank’s FD.which are highly secure.


    Please suggest !!!


    • Suresh says:

      Biswarup. If you are low risk taker, there are several investment optoins 1) Invest in post office RD which gives 8.5% p.a. 2) Investmetn in FD can give you upto 9% return 3) Investment in debt mutual funds can give you upto 11% returns. For mutual funds, you can open a mutual fund account with broker like ICICIdirect.com or any other broker.

  56. ravi says:

    Hi Sureshji,

    I have 12 lacs and would like to invest for atleast 5 years where the returns are minimum 11%. Can you please suggest where and how can I invest? I am also considering splitting the amount and putting them in Gold, FDs, Silver, Bonds, etc. to ensure higher interest rate.


    • Suresh says:

      My suggestion is if you want 11% interest, you should be a risk taker and invest in company FD’s like Mahindra FD or Gold ETF’s (like SBI gold ETF or reliance shares gold ETF) or FD’s etc., Silver may be riskier at this point of time

  57. Lal says:

    Hi Suresh,

    I would like to invest Rs. 1 lac in SBI FMCG Fund. Will i be able to get a return of 30% after 1 year? Please advice.

    • Suresh says:

      Hi Lal, It is very high risk, high return investment. Based on past performance, yes it has provided good returns, howeever there is on guarantee that iw would provide similar returns in future. My suggestion is you if you are high risk taker, you can invest in such funds. 

  58. Dinesh Shirvaikar says:

    Hi Suresh,

    One of the things I have noticed is that most of the data that you source (including for mutual funds) is from moneycontrol.com. While I have nothing against the site, my personal view is that it is better for stock market folks.

    For mutual funds, proven sites as to quality and depth of research are Value Research (http://www.valueresearchonline.com/) and Morningstar (http://www.morningstar.in/).

    It would be much better if u compare the views of both and then qualitatively give your views on a particular mutual fund.

    • Suresh says:

      Hi Dinesh, Thanks for your suggestion. For some of the investments, I am already considering inputs from these websites. However the issue is for e.g. if a mutual fund ranking would get changd very frequently. Means a 5 star would become 4 start or 3 star within 3 months. It would be verify difficult for me to recommend to my readers under such scenario. However rankings from Crisil would stay for some time as it tracks yearly revenues into consideration apart from other parameters. Anyway thanks for your suggestion

  59. SHAFI says:

    Dear Suresh,

    I have 14 lakhs with me. Please suggest where to invest to get highest interest rate. Currently I have FDs of 30 lakhs in Durga Cooperative banks and they are offering 12% p.a; that means Rs.1000 for 1 lakh, a month. Should I go for the same bank or there is any other sources where i can get good interest rate?



    • Suresh says:

      Shafi, instead of investing in one investment option, try to diversify across other banks or if you are high risk taker, you can invest in Mahindra FD or unitech FD etc.,

  60. Aparna says:

    Hello Suresh,

       I would like to invest in SIP for 10 years. If at all i start with 5K per month this year, and can extent to 10K down the lane. So can i start with 5000 per month, and then swtich to 10000 per month(say 2 years later) in SIP? What can i expect at the end of the 10years? I am new to SIP, hence posting the question. And also suggest what are the good SIP's in the market? Your reply would give me clear picture, and I can start planning for the investment in SIP.

    How does the term insurance work. what are the charges for the term insurance.


    • Suresh says:

      Hi Aparna, Yes you can do that. Do one thing, take 5 SIP mutual funds of Rs 1000 each now and later you can modify the SIP value or you can add some more to your portfolio after 2 years. You can expect 12% to 15% annualised returns if you invest for long term. Refer this article where I recomned top-10 SIP mutual funds. Since you are new, invest in diversified, largecap, balanced and debt mutual funds in combination. http://myinvestmentideas.com/2012/12/top-10-mutual-funds-for-sip-to-invest-in-2013/   2) Regd your question on term insurance, you need to pay a small amount as insurance charges and you can taken large insurance. In case of any unforseen thing happening, nominee would get risk cover amount. However if the insured is survived upto end of maturity period, you would not get anything. These are very good one where one wan to take insurance for high amount, but want to pay small insurance charges.

  61. Rajib says:

    Dear Suresh,

    Which bank has the higest return on FD, I would like to invest 50K as FD for 3-5yrs. Will I get a tax benefit?

    What are the other investments with assured return, period is 2-5yrs?

    With regards,  


    • Suresh says:

      Hi Rajib, Please refer this article which provides latest bank FD rates. Also if you invest for 5 year Tax saving FD, you would get tax benefit, else no. If you are looking for assured returns, you can invest in company FD, Bank FD or Post office MIS scheme. If you want to take low risk, you can more or less get 10% to 11% pa.. in Debt mutual funds. Please refer my articles on this subject to know the top details.

  62. gaurav says:

    Dear suresh,

                    I want to invest 1 lac annually for next 5 years and then collect the matured amount to use it for my child's education.I need around 8 lac after five years.Kindly let me know about any plan other than mutual funds or bank FD'S.How is HDFC Banks sampooran suvidha plan if I opt out of insurance benefit in it? I would be grateful to you.

    • Suresh says:

      Gaurav, the one what you specified is a Insurance-cum-investment product. The returns would be 4% to 6% depending on the bonus and other factors. But why do you want to go for such thing. If I would have been in your place, I would take a term insurance + invest balance in high return investments like mutual funds or bank FD’s.

  63. MOHAMMED says:

    hello surash ji i like invest 4Lakh for 10year where i invest and how much i get after 10years

    • Suresh says:

      Md, it would depend on where you are investing If you are investing in stocks or diversified mutual funds @ 12% to 15% returns, your 4L would become Rs 14L to Rs 18.6 Lakhs. Since you want to invest a lumpsum invest in balanced mutual funds + debt mutual funds now. Slowly redeem this money monthly and invest the same in diverisifed mutuals over a period of 1 to 1.5 years. This way you can maximise your returns.

  64. arya says:

    Dear Suresh,

    I am a new investor in MF. Whatever I know about MF investment today is all by reading your blog posts. Please suggest me to make a correct decision.

    I want to make 2 kinds of investment:

    Lump sum: 1 lakh each year for 5 years. Thinking of dividing this money in to 50% debt and 50% equity via STP. The 50% of equity share want again to divide into different kind of MFs(large, mid, small and balanced funds).

    SIP: 5 thousand per month into mid+small cap MFs.


    Whether to do it from a nationalized bank (e.g. SBI) or from private bank (e.g. ICICI)? How to choose the funds? (please suggest some as per the plan above)




  65. Krutika says:

    Hi Suresh,

    I want to  invest 10000 per year which is the best option to invest my money with safe and good return can suggest.



  66. vikash sinha says:

    Hello sir,

       I can invest Rs 8k-10k per month and I will need this money in 2 years,so plese guide me which investment option I should choose. 

    Thanking You.


    • Suresh says:

      Vikas, for short term, invest only in FD or debt mutual funds. Please refer top debt mutual funds artilce available on our website.

  67. Ameet says:

    Hello Sir,

    I would like to invest 3 – 5k per month for the nest 2 yrs, Can you plz advice an investment option that would provide return above 9% ?

  68. Andrew says:

    I am currently in the military and have another two years left. When I get out I am planning to buy a house. I have 17k saved now, and over the next 2 years I will have saved another 25k not including any interest. My goal is to have 50k by my EAS. What is my best option for reaching my goal, while still being able to access my money in July 2015?

    • Suresh says:

      Andrew, Since you have only 2 years, you can invest your current surplus in debt mutual funds. Also your monthly investments, you can invest in debt mutual funds and Bank FD. I am not suggesting any moderative investment options as you have only 2 years and want access to your money. 1) Rs 17K – Debt funds @ 10% for 2 years would become 20.74K 2) 1.05K per month in debt + bank FD combination @ 10% returns would become Rs 28K (approx). Total would be Rs 49K approx (pre tax). If you can take some moderate risk and increase your tenure, invest in diversified mutual funds, you can able to grow your money. Refer top debt mutual funds article for some of the good funds. http://myinvestmentideas.com/2013/02/top-10-debt-mutual-funds-to-invest-in-2013/

  69. Bhajan basnet says:

    Hello sir
    All I have is 70 th rupees I would like to invest it for 1 year where can I get the highest return and how please suggest me.

    • Suresh says:

      Hi Bhajan, If you want to invest for 1 year, better invest in bank FD. In case you have knowledge about mutual funds, you can try ultra short term mutual funds

  70. Saumya says:

    Hi Suresh,

    Nice to see such an informative article.

    I would like to invest some 30k for a very short term. We are planning for my sister-in-law's wedding and when it finalises, we would need to immediately withdraw this money as well. Is there any good option for this?

    I am relatively new in this field, Can you kindly advise me?

    Thanks in advance.


    • Suresh says:

      Saumya, There are several options to invest for short term like Ultra Short term funds, liquid funds etc., However since you are relatively new, do not do any risk now, my suggestion is to invest in bank FD. However you should learn about the mutual funds so that you can benefit in future.

  71. Pankaj says:

    Hi Suresh,

    I would like to invest Rs. 35000 this year which can be used after 5 years for my daughter's fees. Please suggest some short term Mutual funds & this I would like to do in the subsequent years, so please suggest.

    Thanks & Regards,

    Pankaj P. Chaudhari

    • Suresh says:

      Hi Pankaj, Since this is a single investment and not regular investments, you can opt for debt mutual funds or bank fixed deposits. You can refer best debt mutual funds or best bank FD’s in my  articles. 

  72. Jeetu says:

    Hi Suresh Ji,
    I want to invest 50,000 for 01–2 yrs ,in debt fund. I am new to this . kindly advise the best debt fund for this period. should I invest through SIP or full amount in one go. Earlier to this I had invested in FD only.

    Anticipating your reply ASAP.
    Thanks & regards,
    Jeetu Kumar

  73. Dipika says:

    Hi Suresh,

                First I have to appreciate your efforts for informing so many people on investment options. This kind of information is difficult for common people to access and they get decieved by agents, etc. So for someone like you to sit on a computer and dissect every question for a response.

    My query are below.

    1) I want to know About Mutual Fund.( like how it works, how many type of are there?)

     2) How much I can trust CRISIL, ICRA, BRICKWORKS, CARE ETC.

    3) I want to invest some money in various company short term FD deposit.(like HDFC,DHFL,Jaypraksh). Now my query is if I invest dircetly to the company should I loos anything or gain anything.

    Thank and Regards




    • Suresh says:

      Dipika, 1) Since it is basic one, I have not concentrated on that, but there are several new investors who are asking for this. I would write an article about the types of mutual fund and how it works in next 7 to 10 days. 2) Crisil is a rating agency and they does lot of research before giving a rating for a company or mutual fund. It is a starting point to ascertain, whether we should invest or not and cannot be a sole reason 3) Company FD’s are high risk, high return investments. You should check good rated companies before you invest in them. 

      • Dipika says:

        Hi Suresh,

        Thanks for your reply.

        I am egarly waiting for your MF article.

        I always keen to know investment idea because how I rollover my surpluses for future rainy day.

        Your artcels help me a lot.

        Thanks and Regards.

  74. Pius says:

    Hi Sir
    I have read this article as i m interested in short term investment plan.
    I have a need of around 2-3laks in the next two years can u suggest me. how much do i have to invest every month to achieve the amount and through which investment plans. Kindly provide the link also for your suggested invested plan.

    • Suresh says:

      Pius, The investment per month would depend upon where you want to invest. If you want to invest in bank FD where the returns are 9% p.a., you need to invest Rs 7,500 to earn Rs 2L or Rs 11,500 to earn Rs 3 lakhs. 

      • Pius says:

        Hi sir
        i wanted to use the best short term investment option out of the six which you have mentioned in this article.
        Also i wanted to invest lowest possible amount per month to achieve the total amount. As i seen other comments you have adviced debt funds for few people who wanted short term investment options of two years. The rate is also ranging from 10-15%. So kindly suggest as per my requirement of highest returns with lowest investmenment per month to reach my target amount of 2lacs in 2 years with risk free.

        • Suresh says:

          Pius, since you indicated risk free option, I recommended those options where there is zero risk. If you can take low risk, you can invest in debt mutual funds too.

  75. Muru says:

    Hi suresh, good work keep it up!

  76. SathyaVenkatesh says:

    Hi Sir,

    I am very new to this mutual fund. I can invest upto Rs.20,000 per month for the next 5-6 years. Kindly advice me the best investment plans. 




    • Suresh says:

      Sathya, Please refer our top-1 mutual fund article. You can invest in largecap, diversified, mid-cap, balanced and debt mutual funds. Keep some portfolio for sector based funds too. Here is the link. All the best. http://myinvestmentideas.com/2012/12/top-10-mutual-funds-for-sip-to-invest-in-2013/

      • Dinesh Shirvaikar says:


        As Sathya is a new investor in MFs, it is not a good idea to recommend sector or theme-based funds, These are meant for savvy investors who understand the sector and the theme they are investing in. And besides, in any well diversified equity fund, the fund manager would anyway ensure that the money flows into attractively-placed sectors. So why take a risk with own judgement against a professional one?

  77. Satish says:

    Hi, Suresh,


    I can invest 1 lakh every year for next 5 years, kindly suggest me any plan which can give me good returns(around 10-13% min) and also give me rebate for my tax purpose

    • Suresh says:

      Try Equity Linked Saving Schemes (ELSS) Mutual funds. There is an article I posted two days back about best ELSS schemes. I felt these are the best among the tax saving options where you get highest returns + tax savings.

  78. Sujit Dutta says:

    hi, Suresh..i want to invest rs 5000 to 6000 per month to 8 -10 months ..plz suggest me investment plan ..i want to have a sum of rs 80 to 90 thousand by april 2014, i m new to investment n have no idea abt mutual funds or market..also guide me to risk n imp points while investing to avoid any fordging..thaks

    • Suresh says:

      Sujit, You are looking for very short term period. My suggestion instead of experimenting in various investment options for very such short period, invest in bank fixed deposits. You would get 9% interest rates p.a.

  79. Vishaal says:

    Hi Suresh,

     I am completely new investor and I can invest 10,000 per month for next 3 years.Please  Suggest me, which investment will be better and risk free to grow my hard earned money. Thanks in advance.

  80. Jin says:

    Hi Suresh, I don't have any queries. Just came across this article while doing a google search. Want to appreciate your efforts for informing so many people on investment options. This kind of information is difficult for common people to access and they get decieved by agents, etc. So for someone like you to sit on a computer and dissect every question for a response (irrespective of its accuracy) is noteworthy. Keep it up!

  81. gunjan says:

    Hi Suresh,

    I can invest 12k per month. I have not done any investment before so want you to guide me as what would be the best option for me to get good amount of returns in 3 years and which is tax free too.


    • Suresh says:

      If you are planning to invest for 3 years period, go for debt mutual funds or deposit in FD. Both the options returns are taxable. There are no tax free invetment options for short term.

  82. abhilasha sharma says:


    Want to know more about FMP (fixed maturity plans) and how safe it is to buy these.

    Looking for one time short-term investment (2-3 years).

  83. suhas says:

    i am 23 yrs please advise me for lic best plan i can pay 30 to 35000 per year

    • Suresh says:

      Suhas, Pls take LIC plans for insurance and not for investment. For investments, invest in stocks, mutual funds, company FD and other investment options

  84. malik says:

    Hello sir

    i need 10 lakhs after 5 years / how much monthly i invest and where pl guide me

    • Suresh says:

      Malik, If you want Rs 10 lakhs after 5 years and if we consider 9% to 15% annualised returns, you need to invest Rs 13,200 (considering that you would get 9% returns) or Rs 11,200 assuming that we consider 15% annualised returns. Invest in a combination of large cap funds, diversified funds and debt funds/FD’s

  85. Sachin says:

    First of all, thanks for ur bst suggestions to all.I hv 1.5 mill rs. But dont knw where to invest.

    After 2 yr want to purchase flat ~ 5 mill . so is it better to invest now in any project  or should invest somewhere else & than purchase flat.

    Till next 2 yrs can save 50k X 24.

    Pls reply



    • Suresh says:

      Sachin, if you are looking for short term investment, better to invest in FD or debt mutual funds. If you are planning to save Rs 50k per month for next 2 years, invest in top mutual funds in various categories. Refer top-10 mutual funds article on my home page.

  86. Rajdip says:

    Hi Suresh,

    I need some guidance from you for the investment planning.

    Can you please give some idea for long term(looking for retirement planning) and short term invetment ideas.

    I have heard for SIP planning, so in which kind of fund should I invest.

    • Suresh says:

      Rajdip, refer my popular article top-10 mutual funds to invest in mutual funds. If you are looking for short term options, invest in FD or debt mutual funds for now.

  87. Somasundaram says:

    Hello Suresh,

    I am really impressed with your work. I am planning to invest 1 lack for a short-term period  (1yr).   I have the chosen the below MF's

    SBI Dynamic Bond Fund (G)  -> 25,000 (Income Fund) – Contigency purpose

    Kotak Gilt Investment PF & Trust Plan (G) -> 25,000 (Gilt Fund) – Contigency purpose

    Morgan Stanley STBF – RP (G)  -> 50,000 (Ultra Short Term Fund) – Marriage purpose

    Please give me your advice on the above funds. Correct me if I have choosen wrong funds.

    Also I would be required Rs.3,00,000 in 2016-17. So how much do I have to invest for that and where to invest.

    Thanks a lot.



    • Suresh says:

      Hi Somasundaram, all of them you have choose are good safe funds. Also you cannot expect high returns on these as these are debt/gilt funds and for short term. If you want Rs 5 lakh at Mar-2016 (3 years from now), even if you want to invest in bank FD @ 9% p.a., you need to invest Rs 12,000. Alternative we can expect around 12-13% annualised returns in Mutual funds and you can invest Rs 11,300 in diversified, largecap,sector funds, debt funds and Bank FD as a combination.

  88. dr. amit says:

    hello …

    thanks for good articles..

    if i open a ppf account for my 4 year old son and start investing 1 lakh rupees annually, when would i be able to withdraw whole amount invested, and would it be tax free?

    • Suresh says:

      Hello Doctor, Interest on PPF account is tax free. The PPF account can be opned for 15 years period only. There are partial withdrawals available after few years. But you should open this for entire period to get benefited. current PPF interest rates are around 8% adn on top of this you would get Tax benefit under section 80C.

  89. Bijay says:

    Hi , 

    I am planning to save 75K per  month for 2 years in-order to save enough money  to make a downpayment for house and my marriage. I am planning to buy house worth 55lacs. Please suggest some investment options for 2-3 years duration with moderate risk . 


    • Suresh says:

      Bijay, For short term period of 2-3 years and moderate risk, you can invest in debt funds, balanced funds. Keep a small portion for diversified funds too.

  90. sam says:

    Hi Suresh,

    I made a grave mistake by investing Rs.50K in Reliance endowment policy as I was misguided by a insurance agent. My mode of payment is yearly and I made only one premium payment. Please let know if it is a good idea to stop paying rest of premium amounts and to discontinue this policy.


    Thank you,


    • Suresh says:

      Sam, this is an endowement plan. With the info provided by you, I could not understand why you are thinking that you have done mistake. Every insurance plan would have positves and drawbacks and its suitability would not be same for every one. It depends upon the age, sum assured, riders considered etc., If you can provide more info about why you think that this is a mistake, I can guide you.

      • sam says:

        Thank you for the reply, Suresh. In my case, I would be investing Rs. 50000 a year fior 5 years. At the end of my policy tenure, I would have paid 2.5 lakhs. I'm just worried about the returns that would be getting after 5 years.  I'm presuming that I would be getting just around 5-6% returns.

        I'm thinking of discontinuing this policy considering the 5-6% returns which is generally  said to be the returns % of Reliance endowment plan.

        Just thinking, If I discontinue this policy I could invest 50,000 every year in pure investment policy that could offer better returns like PPF, NSC, debt mutual fund,etc … I already have ICICI Guaranted savings policy and I'm into 3rd year of the policy term.

        Please advise and correct me if my thinking is wrong. 

        Thank You ….

        • Suresh says:

          Sam, Please do not get confused Insurance Vs Investment. Insurance is for security and investment is to grow money. All insurance products give only 5% to 6% returns only.

  91. Trisha says:


    My name is Trisha and i really found this article usefull. I want to invest 15000 Rs monthly for 1 year. Can you please advise me where to invest so that i can get atleast 12-15% return after 1 year.

    Also can you please suggest the specific funds where i can invest using SIP option.


    • Suresh says:

      Trisha, You can get good returns only if you are looking for medium to long term. For 1-2 years it would be difficult, but you can still try investing in debt mutual funds where you can maximise the returns for short period.


    Dear Suresh i want to invest in 2 kids in Jeevan Sugam age is 11 & 8 resp.

    Let me know if this good.


  93. Vicks says:


    what do you think about investing in Money Market for short-term investment?

    • Suresh says:

      Vicks, Money maket instruments are treasury bills, certificate of deposits, commercial papers etc., These are generally traded by large financial institutions, dealers and government. They are good for short term investments and they are highly liquid in nature.

  94. Abhishek Singh says:

    Dear Suresh,

    I want to invest Rs. 50k per month for one year. What are the best short term options available for me ?


    Abhishek Singh

  95. Vishnu says:

    Hello Suresh

    Can u pls advise the best short term plan to deposit 50 lac just for a period of 30 days?…



    • Suresh says:

      Vishnu, Since it is only for 30 days you can invest in Bank fixed deposits only. In mutual funds you should atleast invest in 90 days (ultra short term funds).

  96. Rajesh says:

    Dear Suresh,

    Thank you very much for creat very usefull site and investment information,

    I have 2 lacs fd in HDFC Bank with 9% rate of interest & i m intersted for Investments in corporate/company deposits/NCD’s 2 lacs rs.

    Please give your suggestion? & let me know corporate FD is 100% safe or risk???

    Best regards,


  97. monica says:

    Hi just wanna confirm as I m new to investment in mutual funds but frm two yrs I use to do RD only , earlier I hd done investment in funds like JM contral heavy loss I gt, so need ur suggest which n how to choose right fund thanks monica

    • Suresh says:

      Monica, Sad to hear that you had bad experience in mutual funds. You can look at investing in top mutual funds in largecap, diversified, balanced mutual funds and debt mutual funds. Pls see our top-10 SIP mutual funds article in the home page under popular posts.

  98. veeresh says:

    Hi suresh sir
    Please guide i want to invest 3lac and expecting monthly returs from it pls help me in investing other than post office


    • Suresh says:

      Veeresh, there are  3 options. 1) You can invest in bank FD’s where you can get monthly interest 2) Invest in monthly income plan mutual funds-Returns are not guaranteed every month, but it is good option for moderate risk takers 3) Post office MIS scheme where you can get monthly interest. Alternatively you can invest in other mutual funds such as debt mutual funds and put a Systematic withdrawal plan (SWP) wherein you can withdraw fixed amount per month.

  99. nitish kapoor says:

    Hi sir,

    My name is nitish , which one is the best option in invest money (1)GOLD (2)MUTUL FUND, sir please advised me , i want to invest my hard core money and i want invest monthly basics so pls advised me.




    • Suresh says:

      Nitish, Currently gold prices are getting stabilised or you can see some downtrend. If you are long term player, you can invest in gold ETF’s. Regd mutual funds, you can invest in diversfiied mutual funds and large cap mutual funds, debt mutual funds etc.. pls see our top-10 mutual funds article for more info. However look these things for long term perspective.

  100. Diwakar says:

    Hi suresh, I have no idea on Mutual Maket, I have 50,000/- in hand which is my hard earned money. can you suggest what is the better option. waiting for your suggestion.


    • Suresh says:

      Diwakar, If you are new to mutual fund investments, you should invest in debt mutual funds which invests majority in fixed income securities and they are less risk. Please contact a mutual fund broker to start investing.

    • Diwakar,

      It would also depend upon for how long u intend to stay invested. If u are looking anything above 3 years, u can also try Balanced Funds or MIPs which invest a small portion in equity.

      Check out any of Suresh's articles which provde good picks in these catgeories.

  101. Ashwini says:

    Hi Suresh,

    I can invest upto 10k. Could you please tell me the option where i could get 8 to 10 lacks after 4 years?

    Thanks in advance



    • Suresh says:

      Ashwini, To get Rs 8 L in 4 years with Rs 10K investment per month, your returns shud be 25%. Unless you put your money in high risk high return investments you may not be able to achieve this target. If you are a high risk taker, you can invest in Sector based mutual funds like FMCG/Pharma mutual funds and investments in Gold ETF’s to achieve this target. You can see our articles about best FMGC, Best Pharma funds and best gold ETFs’ to buy. Thought Gold is a good investment in long run, these are high risk, high return investments for medium term of 4 years.

      • Dinesh Shirvaikar says:


        Even if the investor puts in her money in high risk high return investments, it looks highly unlikely that the mentioned target will be achieved. Even the best of funds has not given a return of 25% over last 10 or 15 years. Also, for an investor with risk-taking ability, unless they have a good understanding of the sector and market, and can time their entry and exit well, it may not be a good idea to invest in a sector/theme-based fund. Even though sectoral funds returns of good fund houses (with the exception of probably JM) other than infra have been generally good, that may not be so going forward, especially considering the volatility in the last few years. Besides a well diversified fund will anyway be able to latch on to the promising sectors, isn' it?

        • Suresh says:

          200% in agreement with you  Dinesh. Like I said to one of the reader who called me from Behrain is you should know when to “enter” and when to “exit”. This is the mantra to maximise the returns. It could be stock or it could be sector mutual funds.

  102. intekhab says:

    Hello sir ji

    i want 15 lackh after 10 years hw mh i invt. monthly


    • Suresh says:

      Intekhab, You need to invest Rs. 5,500 for 10 years to get Rs. 15 lakhs based on 15% p.a. returns. You can invest in large cap mutual funds and diversified mutual funds to achieve this. Enjoy your day.

  103. Nikhil says:

    Hi Mr. Suresh

    I have 14 lacs which i want to invest but only for a period of 6 months or so. Can you recommend the best option ?

    Thank You 


  104. MOhammad says:

    Hello sir.

           i want 15 lackh after 10years How and how much' i monthly invest and where pl adv. me

    THank you

    • Suresh says:

      Mohammad, You need to invest Rs 5,500 for 10 years to get Rs 15 lakhs based on 15% p.a. returns. You can invest in large cap mutual funds and diversified mutual funds to achieve this.

  105. Michel says:

    Hi suresh i have got few lacks of rupees which i have saved out of hard earning money. Is the investment in Debt mutual Fund specially in Kotak/Reliance/ SBI will be safer. What do you suggest to invest Rs 25 lacs preferably not in a single basket. SHALL WAIT FOR YOUR EARLY REPLY IN MY MAIL

    • Suresh says:

      Michel, Investment in debt mutual funds are safe comparing to other mutual fund investments. If you are looking for short term period upto 3 years, you can invest in debt mutual funds. Pls refer my latest article on top-10 debt mutual funds if you want to diversify across 4-5 schemes.. Also I would not advice you to invest entire amount in mutual funds. Invest in multiple investment options like Debt mutual funds, Balanced mutual funds, Bank Fixed deposits. Since markets are at peak and looking for some direction (positive or negative), investing a large amount of your hard earned money in equity or large cap mutual funds at this moment is not advisable.  All the best

  106. Nitesh says:


    I want to  20000 for 1 & half year which is the best option to invest my money with safe and good return can suggest 



  107. narayana says:

    Hi Suresh,

    If i invest money in NCD's and need money after 6M,is it possible that i can take money..If so,what are the penality/deductions..applied.


    Thank you



    • Suresh says:

      Narayana, Generally NCD’s are listed on stock exchange. In such cases they can be sold in open market like any other stock. No penalty. However the NCD price may fluctuate based on the interest rate coupon dates. But better to check upfront before you apply as NCD’s which are not listed may contain terms and conditions to withdraw/redeem money within 6 months or so.

  108. LALIT PAUL says:

    hi suresh , your reserch work are excellent , post some thing for long time investment plan say 21 to 31 years 

    where annualised income will be around 11/12 % .


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