What is the best way to invest a lump sum amount in India? I want to invest 40 lacs for long term (3–5 years) and 10 lacs for short term (around 1 year) and get 10+% returns.

preparation, robust gear, and a long-term commitment, the Goan escapade is more about relaxing for a short while. Your investment journey isn’t too different.

For your long-term investment of 40 lacs:

1. Equities: A significant portion should be allocated here, especially if you are aiming for 10+% returns. Using the Roots and Wings philosophy, seek out stocks that offer stability (Roots) and growth potential (Wings).
2. Mutual Funds: Mix of large-cap, mid-cap, and small-cap funds. The diversity reduces risk and taps into the potential of different market segments. Remember, as Benjamin Graham once said, “The best time to invest is when you have money.”
3. Debt Funds: While equities provide growth, having a portion in debt ensures safety and acts as a cushion during market downturns, aligning with the safety segment of Jama Wealth’s LSG framework.

For the short-term investment of 10 lacs:

1. Liquid Funds: These are akin to the soothing waves of Goa – relatively safe with quick access to funds. They offer better returns than regular savings accounts and are highly liquid.
2. Ultra Short-Term Debt Funds: Given your 1-year horizon, these funds offer a blend of safety and slightly higher returns than liquid funds.
3. Arbitrage Funds: Capitalizing on market inefficiencies, these funds offer equity-like returns with debt-fund-like risks.

While these avenues sound promising, a sprinkle of caution is essential. The stock market isn’t a place for the shortsighted. As the Indian investment guru, Radhakishan Damani, aptly puts it, “Stock markets will test you with volatility. The real test is how you handle it.”

For those 10+% returns, ensure your portfolio has a balanced mix, resonating with the harmonious melodies of both the mountains and the beaches.

And if the vastness of the investment landscape seems daunting, consider reaching out to Jama Wealth. Our tailor-made portfolio management services (PMS) are designed to combine your 40 +10 = 50 L investment portfolio to guide you through both your Himalayan treks and Goan escapes in the financial realm.

To sum up, blend safety with growth potential, tailor your choices to your time horizons, and always seek advice if unsure. It’s how you ensure your journey is both enjoyable and rewarding.