Top expert strategies for wisely investing 10 lakh in 2023

Published by: CNBC-TV18.com

Finding an investment avenue for ₹10 lakh that provides adequate returns in a short period is challenging. This guide provides insights from financial experts on the best approach for investing ₹10 lakh.

Judicious Allocation

Nikhil Aggarwal, CEO at Grip, suggests a judicious allocation across a spectrum of investment avenues.

Diversification Key

Diversifying between equities, fixed income instruments, and avenues like bonds, CRE can target an average annualised return of around 8-10%.

Emerging Sectors

Investing in growing sectors like technology or sustainable energies can potentially yield exponential gains.

Equity Rewards

Equity is considered one of the most rewarding asset classes to bet on.

Risk Tolerance

Investors with different risk appetites should allocate accordingly between equities and debt.

Quality Mutual Funds

Investing in quality equity mutual funds helps to diversify unsystematic risks.

Investment Horizon

It’s vital to determine the investment time horizon before selecting funds.

Index Funds

Many experts endorse index funds as a low-cost option for long-term investments.

Age Factor

Age plays a crucial factor in investment decisions.

Gold Investments

Gold serves as a valuable diversification tool within an investment portfolio.

Alternative Investments

For short-term financial goals, alternative assets such as P2P lending and lease finance can yield returns of 10% or more.

DSP Natural Resources and New Energy Fund has shown promising returns, with 32.62% in 1 year and 20.09% in 10 years.

Invesco India Infrastructure Fund has performed well, yielding 35.54% in 1 year and 22.43% in 10 years.

Key equity mutual funds and their returns:

Key equity mutual funds and their returns:

Nippon India Multicap Fund has given strong returns of 31.03% in 1 year and 19.02% over a decade.

Bank of India Manufacturing & Infrastructure Fund has posted gains of 33.73% in 1 year and 19.92% in 10 years.

Key equity mutual funds and their returns:

Sundaram Consumption Fund has delivered returns of 21.97% in the past year and 18.10% over the last decade.

Nippon India Small Cap Fund has impressive returns, with a 1-year return of 38.92% and a decade return of 30.50%.