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I am 26 and want to invest for my short-term goals. I plan to get married in a year and need funds for that. I can save 10,000 per month. Right now, I have invested in equity but have not received expected results as my portfolio is not diversified. Could you please suggest how I should diversify my portfolio?

—Shivani Beserwal

One year is too short a time frame for any equity market investment when you necessarily need the money at the end of the investment period. The only situation you can invest for a year in the stock market is when you are dealing with money that you can afford to lose significantly. It is unlikely that you would be in a position to take such a risk with your investment at this time. At best, you can invest the amount in some low-risk liquid funds and get decent returns (around 6% before tax) in a year.

Given the current high valuations in the stock market, investing there with expectations of high returns in a year with a definite timeline would be a highly risky venture.

Srikanth Meenakshi is co-founder, PrimeInvestor.in

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