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Where should I "invest" or "park" my money for around 6-8 months?
I recently secured a 3 month internship with a stipend of around 10k per month. Initially, my goal was to find internships and save whatever I earned towards my CFA. However, since my mother has kinda agreed to fund my CFA, I plan to use my 3 month stipend to cover most of my college fees. The fees is usually due around July-August, which gives me a buffer of 5-6 months. In the meantime, I want to park my money somewhere. I plan to invest roughly ₹8,000 per month for three months. The conventional choice would be liquid funds or other short-term debt funds, such as ultra-short-term funds, money market funds, or short-term funds. However, with central banks like the Federal Reserve and ECB cutting rates—and the RBI MPC meeting scheduled in a few hours, where a rate cut is likely—there could be an interest rate risk. Falling rates could lead to lower yields and, in turn, lower returns on these funds. Another option I’m considering is ETFs or index funds, such as Nippon Bees or Nifty Next ETFs. I’ll likely opt for ETFs due to their affordability, but I’m concerned about the 15% STCG if I liquidate them after six months. Additionally, after researching further, I found that if TDS is deducted upon liquidation, I’ll need to file an ITR to claim any refund 🥲. Debt investments, on the other hand, appear to have a lower tax burden, making them slightly more tax-efficient in the short term. Coming to the main point, I need some guidance on how to proceed. I always assumed investing would be straightforward, but it’s turning out to be more complex than I expected. Would equities be a better option, considering the budget measures and the potential impact of the Delhi elections if the BJP wins? Since I don’t need the money immediately, I can even wait for 1-2 months after August, giving me flexibility to liquidate around October if needed. I know this wannabe research thesis sounds a bit all over the place, but it’s my first time investing, so I’m a bit confused. Any advice would be greatly appreciated. I also need to narrow down my options in the next few days. 😭1
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