Need Advice: Investing Lumpsum with 5-Year Horizon (Low to Moderate Risk Tolerance)
My family has a net worth of approximately ₹1.2 crore, with about ₹1 crore available for investment. I am inclined towards a low to moderately low-risk profile. The entire amount is currently liquid and ready to be invested. My investment horizon is around 5 years, after which the funds will be divided among siblings.
Here are the options I am considering:
- Invest in land in Chennai –
One area is priced at ₹5,500 per sq. ft. and has potential due to a bus stand relocation a few years ago.
Another option is in the IT corridor at ₹6,500 per sq. ft., where metro construction is ongoing.
This option would involve investing around ₹90 lakhs, including registration. The rest would be invested in fixed deposits and mutual funds.
- Invest in mutual funds –
Portfolio allocation: 17% equity, 64% debt, 13% gold, and 6% liquid assets.
- Invest in a flat in Chennai (IT Corridor) –
Flat cost: ₹60 lakhs + ₹6 lakhs for registration.
The remaining amount would be invested in mutual funds and fixed deposits.
What would you recommend and why? Please list your reasoning.
Selling real estate is equally tough. You have to wait until you get a buyer for right price. It also includes taxation that you need to consider.
Mutual funds are risky for short time period.
Better go with instruments having fixed returns and some allocation in index based mutual fund.
