InvestorQ : sir, I have lump amount of 3L. I want to gain decent gain in 3 years short period .Which investment strategy is suitable for me? Also please let me know the details of SWP through mutual fund investment?
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sir, I have lump amount of 3L. I want to gain decent gain in 3 years short period .Which investment strategy is suitable for me? Also please let me know the details of SWP through mutual fund investment?

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Sakshi Malhotra answered.
2 years ago
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If your investment time horizon is short, investment in equity/stocks will not fetch better returns for you. So, you have to look for options where you could get the best possible returns.

Since you mentioned 3 years, these are some of your best options:

Liquid funds: This type of fund is suitable for investors who do not want to stay invested for any fixed time. They have moderate to low risk and are generally preferred to create emergency funds. You could get a return of up to 7%.

Fixed Deposits: This investment is suitable for conservative investors, who do not want to risk their capital at all. The returns are comparatively low, but they are almost risk-free.

Bonds: This type of investment is suitable for investors that are looking for some guaranteed income, have a low-risk appetite and are looking to invest for the short term. Bonds, depending upon their very nature, may have a maturity of 3-10 years.
Investment options are not limited to these three as there are plenty of other options as well, such as Recurring deposits, National Pension Scheme, etc.

Systematic Withdrawal Plan(SWP): It is an investment option through which investors can withdraw fixed amounts at regular intervals be it monthly, quarterly, or annually. Investors can decide the duration of their withdrawals which is according to the SWP.  To withdraw amounts at regular intervals, investors have to invest a lump sum amount first, and then the investment grows as per the market growth or growth in the earnings of the plan. Also, these withdrawals are based on fixed units and NAV as on the date of withdrawal. This plan is best suitable for investors that are conservative and seek fixed income from their investment. However, the best returns from this plan are obtained in the long term.

However, you should make a list of your investment objective and what are your expectations, what is your risk appetite, etc. This will help you understand what you are looking for in your investment, and then you could choose the desired option.

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