How to invest 10 lakhs across equity and fixed income

To answer this query correctly, we would have liked to know your age, risk profile, investment horizon and the purpose or goal of this investment.

Since these are not provided by you, we can provide you with some general guidelines which are as follows –

1. By equity investing, we are assuming you are meaning investment in equity mutual funds. However, for investing in equity mutual funds, you should have an investment horizon of atleast 5 years.

2. Risk profile – If your risk profile is conservative, then investing in debt funds makes sense. Again in debt funds, you should choose funds based on your investment horizon. Suppose you want to invest for less than a year then liquid funds are ideal. If it is more than 1 year or say upto 2 years, then short term debt funds are good choice and any investment above 2-3 years, income funds are the best choice.

However, if your risk profile is moderately low to moderate, choose hybrid debt funds and in case it is moderately high, then balanced funds and large cap funds may be suitable to you.

3. Risk profiles higher than this can invest in diversified equity funds, mid and small cap funds or thematic/ sectoral funds. But in any case, investing in equity funds, as mentioned earlier, with investment horizon of less than 5 years could be highly risky.

4. Fixed Income – In fixed income space, you do not have much choice other than bank, post office or corporate fixed deposits. If you are looking for tax saving then PPF can be a good choice. And if you are a senior citizen, then Senior Citizen Savings Scheme could be a good choice.

Hope the above helps you. However, as mentioned earlier, if you could share more details then we would be in a better position to reply to your query.

Thanks for writing to Advisorkhoj.