Where to invest ₹5 lakh for best returns in 2024? Experts suggest these asset classes
hit a new high, small and midcaps are believed to be overpriced, leaving investors wary to invest more in equity. Given all this, where should investors invest their money in 2024? We asked a few experts where should one invest if they have ₹5 lakh and they believe a large majority of this sum should be allocated to large-cap mutual funds, while the remainder in debt securities.
The rationale behind investing in large-cap funds is that they are yet not overpriced, while investment in debt funds should be done for long duration since the interest rates have peaked and it is recommended to lock money in fixed deposits and other debt securities such as bonds and debt mutual funds. One option to invest ₹5 lakh wisely is to allocate 70 percent i.e., ₹3.5 lakh in large-cap funds, while the remainder in debt funds.
Sridharan S, a Sebi-registered investment advisor and founder of Wealth Ladder Direct, says that one should invest 70 percent in the large-cap stocks since they are yet not overvalued. One should invest in growth stocks since the value stocks are already overpriced.
The remaining money can be allocated to dynamic bond funds of 2-3 years' duration, he explains. ALSO READ: Amid the bull run, why should you invest in long duration debt mutual funds? While giving reasoning for his optimism for large-cap stocks, Sridharan says, “As inflation eases, interest rates are likely to fall.
This will be reflected in higher corporate earnings and, in turn, in the stock prices." Experts also assert that the investing decision is a function of investment’s tenure i.e., whether investment is to be made for short term or long term. And if your financial goals are a still a long time away, it is advisable to not get carried away with
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