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Where should I invest if I want to park my money for three months?

The strategy to park the lump sum in a liquid fund in the interim for the next three months is a good move

As a severance package I have received a significant lump sum settlement. I have some liabilities to settle in the next three months for which I will need this sum. I would like to utilise the period till then to earn good returns. As only 25 per cent of the lump sum is required to meet the liability; what do you suggest that I invest in?

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Manoj Bhargav, Bhopal

The strategy to park the lump sum in a liquid fund in the interim for the next three months is a good move, not only will it earn some returns, it will be tax efficient compared to keeping the same in a bank deposit. As for the balance sum, depending on the time frame for which you wish to invest and your risk tolerance, you can arrive at a suitable asset allocation (mix of equity and fixed assets). Invest in a portfolio from the OLM Elite list of funds, or you could start with ICICI Pru Balanced Advantage fund, as you come across as a first time investor. Make regular investments through systematic investment plans (SIP) and track the performance of the funds that you have invested in at least once a year and use the opportunity to balance your portfolio.

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