Investment Time Period

“Stay invested as long as you can!” is a common phrase you hear today. While that’s good advice, it can be gratifying to earn the returns while you can still enjoy them!

No investment is complete without goals for yourself. Invest towards them for a certain period and you would have achieved a dream. 

Depending upon what you want to spend on ultimately, you can go in for a long-term, short-term, or even an ultra-short term investment. Here are the various kind of goals, and how long you need to stay invested for each:

  1. Ultra-Short Term Investments

An ultra-short term investment strategy is specifically for one looking to accumulate a fixed sum of money, usually to purchase gadgets, short term certificate courses, gifts for loved ones, home appliances, and other similar products and experiences. These investments are not ideal for purchasing things that are very expensive. Start a SIP with an Ultra-Short Term Investment strategy instead of paying for things through EMI. This saves you from the burden of debt and interest payments. These funds are mainly debt funds, picked especially for high returns at an average rate of 9%.

For instance, say you’re an amateur hair and make-up professional who wants to buy a sophisticated new kit, and it’s going to cost you almost ₹50,000. If you’re a young professional, it’s likely you’re saving on rent by living with your parents. If you can set aside ₹5400 each month for the next 9 months in debt funds, this investment will yield an average rate of 9% returns to give you about ₹50,459 – enough to get all that you need for your new kit!

  1. Short-Term Investments

In a short-term investment strategy, you keep your money invested for a period of 1 to 3 years. This kind of investment is often done by someone who is looking to buy a vehicle, plan a wedding, or build an emergency fund. In a short-term investment, you may be affected by bouts of market volatility from time to time, but this usually tends to be more psychological than real.

For example, if you have plans to study further to grow professionally, saving up for a Master’s degree could be on the cards. If a course you’re interested in pursuing would cost you about ₹12 Lakhs, it would make sense to invest in a short-term mutual fund. Upon investing ₹27000 in a monthly systematic plan, you would be able to raise the necessary finances and fund your own education.

  1. Long Term Investments

The long-term investment strategy is ideal for you if you are looking to stay invested for a duration of 3 years or more. This means you will not be redeeming your invested money in full or part for at least 3 years. You know you are in it for the long haul and are unaffected by day-to-day market volatility. Such investments are often done for children’s higher education, paying the down payment on a house, starting a small business, or saving for your retirement.

For instance, if your goal is to set up a production house, it would require a capital investment of about ₹50 Lakh. Provided you can put aside a minimum of just ₹14,000 each month in a systematic investment plan for a period of 10 years, you can earn returns of at least 19% on having invested just ₹16,80,000!

So remember — no one size fits all when it comes to investments, and how long to stay invested. Put pen to paper, see what your immediate, medium-term, and long-term needs and desires are, and how much you can invest, and for how long. Set up a systematic investment plan accordingly, and reap what you sow!

other blogs

Is SIP better than RD_
Smart Money November 23, 2023

Is SIP better than RD?

In this inflation-bearing world just investing in Recurring Deposits (RD), Fixed Deposits(FD), Physical Gold, Savings Deposits, etc. is not enough as their returns cannot beatinflation. Besides, women are very conservative investors and prefer RD over mutual funds,however, now its time to upgrade ourselves. So, what should one do to get inflation-beating returns and get the Is SIP better than RD?

By Team LXME
Smart Ways to Use Your Diwali Bonus - Lxme
Smart Career Smart Money


It’s always a great surprise to receive that well-deserved bonus during Diwali, after all, Lakshmi ko kaun mana karta hai? But spending that bonus is the trick most of us struggle with. Don’t worry, LXME will teach you how to spend bonus money and how to invest bonus money. Let’s follow the 50, 40, 10 SMART WAYS TO USE YOUR DIWALI BONUS

By Team LXME
UPI Transfer - How to Recover Money Sent To Wrong UPI Id?
Smart Money November 17, 2023

UPI Transfer: How to Recover Money Sent To Wrong UPI Id?

In today’s digital age, UPI has revolutionized the way we handle financial transactions. Thisconvenient and efficient system allows users to send and receive money with just a few taps ontheir smartphones. However, like any technology, UPI is not immune to human error. In some cases,users may find themselves in a situation where they’ve made a UPI Transfer: How to Recover Money Sent To Wrong UPI Id?

By Team LXME