Quora Question: What are the Best Options to Invest around $10,000 Monthly for the Next 30 Months?

The following is my answer to a Quora question: “What are the best options to invest around $10,000 per month, for next 30 months?  I am interested in getting moderate returns, but am averse to high-risk.”

The “best options” depend entirely on what you want to do with that money at the end of this period.  30 months, however, is a very short investment horizon, but $10,000 monthly is a substantial amount.  Since you are averse to high risk but you have a short investment horizon, that means you require something that is relatively liquid with returns that are adequate enough to at least be higher than inflation.  This limits your options.

Putting such a sum aside monthly means that you can take advantage of dollar cost averaging.  That being the case, put the funds into mutual funds or a collective investment scheme.  Put, perhaps, 40% of it into debt securities for a limited form of capital guarantee.  Put the other 60% into equity securities to ensure that you have adequate returns so that it is worth investing.  The reason why I suggest mutual funds or a CIS is because they allow you to spread the risk across various sectors and markets.  This will also lower your exposure risk since your fortunes are not tied to a single market.  This creates an immediate balanced portfolio.  Also, this investment is relatively liquid.  That means you can take it out at the end of the period.

At low to moderate risk, you are looking at an ROI of between 4.5% to 6.5%, if this is managed properly.  Get the advice of a good financial services consultant to ensure that you put your money in the proper funds.  In general, I tend to recommend a pivot to East Asia, excluding Japan.  It takes effort to screw this up and lose money if this is done properly.