— Franky Rayer
Rushabh Desai, an Amfi-registered mutual fund distributor based in Mumbai, responds:
The best place to get 10-15% CARG returns, in the long run, is in the equity markets. Currently, the Indian equity markets are sitting at high valuations. It may be a bit of a challenge for you to get 10-15% CAGR returns from a short-term perspective of three years and I would not suggest you make any lumpsum investments at this point in time.
Also, looking at the volatile nature of this asset class you should only venture into equities only if you have a five-year plus time horizon. For your SIP investments again looking at the volatile nature of equities, one year is not the right time horizon you should have. At these high levels in the equity markets, you should have a minimum time horizon of around six to seven years. Looking at your moderate risk profile and your short-term time horizon, I would suggest you stick with high-quality short-term fixed deposits and debt mutual funds.
