Eyeing that new SUV? Learn when & how to invest your ₹5 lakh lumpsum for your dream car down payment without the stress.
Your car down payment is a short-term goal (6 months - 3 years). Don't treat it like a long-term investment. Capital preservation is paramount!
Equity funds are risky for goals under 2 years. Short-term market dips can erode your ₹5 lakh. Prioritise safety over high returns to protect your capital.
For 1-3 year goals, use a Systematic Transfer Plan (STP). Park your lumpsum in a liquid fund & transfer regularly to a hybrid fund, averaging risk.
<1 Yr: FDs/Liquid. 1-3 Yrs: STP to Balanced Advantage/Hybrid. 3-5 Yrs: Flexi/Large-Cap (de-risk closer to goal). Choose wisely for your dream car!
Don't confuse goal horizons, chase past returns, or use ELSS (3-yr lock-in!). Have an exit strategy & account for all car-related costs. Plan smart!
Ready to hit your car goal? Use our Goal SIP & SIP Calculators at sipplancalculator.in to plan your savings effectively today!