Help me invest wisely?

Question

I can invest Rs 4000 every month for the next 8 months,

I plan buying a good laptop(approx Rs 55,000) next year, with this investment.

no doubt I'll have to pump in extra cash when I buy it.

I just want my investment to produce optimum results, so that I will have to pay less afterwards.

Kindly suggest where do i invest? details will be appreciated. thankx.

Answer 1

Well you have a few options. I would not recommend purchasing any risky securities, like stocks, because even if you buy wisely the market might sour, and you'll either have to wait to buy your laptop, or realize a loss. Personally I would recommend something secure with a definitive pay off. Maybe a money market mutual fund, with very low costs. Also CD's are a great place to keep cash. If you're feeling a little risky, you can put some predetermined percentage into a reliable mutual fund, with good performance going back, I would say 10 years. And definitely one that subscribes to high standards (i.e. conforming to GIPS). I can't recommend an exact percentage, but definitely, I would say, not over 50% of the total portfolio; with such a short time frame, I would even recommend something closer to 10%, if at all. You might miss out on a large stock market rise, but at least you won't get burned if the market descends into panic.

If you'd like you can read more about mutual funds, here:

http://www.investopedia.com/university/m...