Quora Answer: How Do I Invest $100,000 within a Year?

The following is my answer to a Quora question: “How do I invest $100,000 within a year?”

There are a few points to consider here.  Considering your income stream and the amount you have, you actually have enough to qualify for a loan as well as the down payment to buy an apartment.  And that will still leave some left over for you.  However, before buying an apartment, you have to consider why you want to get it.  Once you live in it, the apartment is a cost centre.  If the amount you pay for the loan instalments, as well as the cost of maintenance and shifting in over a year is more than the cost of actually renting an apartment, then rent.

If you are considering buying an apartment for investment purposes, then you have a different set of considerations including the exit strategy, the housing market and the appreciation of the property verses the cost until appreciation and sale.

If you want to invest the funds, you can consider mutual funds or any sort of collective investment scheme.  On the other hand, if you want some element of estate creation, which is a form of capital guarantee, you can put the funds in an investment-linked plan.  They are both sufficiently liquid that should you need to draw on the funds particularly the $30,000, they are available.  And they both have good potential returns of at least 6.5%.  And they both have a slew of funds that you can shift your money around.  Since you are only 23 years of age, take the ILP option since the mortality charges will be negligible.