How to save Rs.25 lakh for down payment in 5 years?

May 6, 2019

I am 28 years old with an income of Rs 90,000/month. I wish to purchase a house after 5 years. According to my estimates Rs 25 lakh would be a sufficient amount for downpayment, GST and registration. My monthly expenses are Rs 35,000 and I am willing to save/invest upto Rs 40,000 per month.

1 Answer
May 6, 2019
The easiest option would be to save money through a recurring deposit. It will give you an assured return, however the returns will be lower as compared to other options. A monthly deposit of Rs 35,000 for a period of 5 years, with an annualized return of 8% will sufficient to save Rs 25 lakhs. But are you sure that you want most of your investment towards the downpayment? You should also think about other goals like wedding expenses, raising a child, car, retirement etc. There is also inflation to take into account. A mixture of debt, equity and hybrid funds will allow you to save for the downpayment as well as for your longer term goals. Please contact a financial advisor near you to help you with goal oriented SIPs in mutual funds.

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