How to invest Rs 1 lakh in India? Do it Zerodha co-founder Nikhil Kamath's way to reduce risk, get better return

Zerodha co-founder Nikhil Kamat has outlined his strategy for investors who want to invest Rs 1 lakh.

Investment decisions are not made in a blink of an eye, especially for those with low funds and lesser risk appetite. People with low funds prefer to invest in such instruments that give a stable return with low or no risk at all. So, if you are also planning to invest some amount and want a better return than traditional tools like Fixed Deposit or Senior Citizen Saving Schemes. Zerodha co-founder Nikhil Kamath has outlined his strategy for investors who want to invest Rs 1 lakh.

In an interview with a newspaper, Kamath said that he would go for about 40% equity and 60% debt on a broader portfolio. He said that this is as conservative as he could get with the investment.

If one remains invested in the equity and debt for a fairly long period say five years or more, one can hopefully get around 10-12% return which will be almost 5% more than one could get from fixed deposits. 

"The best investors most often do the simplest stuff, complexity is overrated," Kamath said in a tweet.

Zerodha has said in a tweet that sometimes market conditions are not conducive to one's trading style & there is nothing one can do about it. "When the right market conditions aren’t there, you have to stand aside and wait," it said.

It may be noted that BSE Sensex has yielded around 89 per cent return in the last five years. It was around the 33,000 mark in 2017 and is trading at around the 63,000 mark at present. This shows the potential of long-term investment with patience.