Where to invest 20L for 1-2 years this month (Dec-25)?

Personal finance
1

I have a surplus corpus of ~20L that I want to invest for ~2 years. Any recommendations?

Since gold & silver are at an ATM, it does not make sense. Small caps and midcaps are one option, but I am not sure of the 1-2 year horizon, hence keeping it as an 2nd option. Nifty index seems to be going nowhere.

Any breakout trades?

(btw I am an active micro cap investor, and option trader, so complexity is not a problem. Right now I am using the funds for option writing since could not finalize where to invest)

Feel free to debate and suggest any ideas, would appreciate it.

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2

Since your investment horizon is around two years (its short term IMO), ETFs or liquid funds are more suitable options. Direct stock investing typically needs a longer time frame to generate expected returns and manage market volatility.

3

Nifty for 2 year horizon, 28-30k target by many analysts :rocket:
Maybe hedge a little bit with gold, because you never know! :four_leaf_clover:

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4

I usually park surplus cash in liquid funds since they are low. I use Liquidcase so the money stays ready and can be deployed quickly when an opportunity comes up.

Arbitrage funds can be the next option, offering slightly better returns than liquid funds by using equity arbitrage in short cycles.

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5

you can refer discussion… and draw your own conclusions!!

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6

this surplus is not meant to be used in trading, and hence would like to invest it instead of parking them in liquid funds.

7

2 years is again an estimation that I might need these funds, but it can very well go to maybe 3 as well. So considering that, given nifty has not moved in the last 1.5years, and horizon of 3 years sounds reasonable for nifty etf investing. Any ideas of this thought?

8

You can get unlucky too and markets could be down 20 30 40% when you need it. Not as likely but it is possible.
So manage/accept that and then you can invest in equity and add other stuff if needed. Equity + Debt is a decent way to do it and you can use the debt part to withdraw money at any time.

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9

Do some Research Or take help from pros,
Select 20 stocks which have a clear potential of 25+ % upward move.

Allocate 1 Lakh for each stock

Or

Do allocation on their potential.

Say if you think it has 70 % of Hitting 25%+ Target then allocate 1.30 Lakhs and so on.

You can also use GTT with proper SL and TGT on system and trail SL and TGT.

This will keep your risk limited and a potential trailing opportunity to milk the full trend to maximize the returns.

10

Buy 3 good Div yielding Nifty 50 stocks and sell ATM Call to start with. If the call end up ITM, then rollover ITM same strike as long as you get 1% premium on the stock price. Even far ITM call will get 0.7% for sure, but sell a strike that gets 1% premium. This is only when you land ITM. If not sell ATM calls or OTM Calls if the stock goes lower.

Covered call is the best