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How Should I Invest Rs 5 Crore?

Adhil Shetty


Q. How Should I Invest Rs 5 Crore? Which Are The Best Investment Options? Kapil Kumar 

A. Investment decision should be based on your financial goals. If you have got Rs. 5 crore and want to invest it, you need to sync the investment decision to your short and long-term financial goals.

While investing the fund, you should take decisions according to your risk appetite, age, and return expectations. Tax efficiency plays an important role while investing a big amount. So select the investment instrument which is more tax efficient than others and offers good return at the same time. While investing a big corpus, you should adequately diversify the fund into different assets classes.

You can use the fund to invest in the undermentioned assets:

Real estate: You can use up to 40% to 60% of your fund to invest in the real estate. Depending on your choice, you can put the money in commercial or residential properties. Commercial real estate can give you good rental return and capital appreciation, whereas residential real estate is easy to handle and you can also use it for personal purposes. It offers a very attractive real rate of return in the long-term.

Invest in equity mutual fund: You can invest up to 20% of the corpus in the equity oriented mutual fund to earn attractive returns in the long term. Diversify the investment across different mutual fund companies and into different types of equity schemes.

Invest in SGB: Gold is said to be one of the best hedges against inflation. You can invest up to 5% in SGB for capital appreciation and also earn interest income. While interest income would be taxed as per your applicable slab rate, the invest on maturity is tax-free.

Invest in small saving schemes: Invest remaining fund in small saving schemes like PPF, post office FD, etc. It will provide you steady returns in the long-term.

Apart from investing your corpus, you should get adequate insurance for your health and life cover.

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