Archive · 12 Aug 2025
Experts Recommend Mutual Funds for Home Down Payment Savings
Saving for a house down payment can be tough.
Financial experts suggest using mutual funds, but the type of fund should depend on how long you have to save.
If you have less than three years, pick safer funds.
For longer timeframes, you can choose funds that invest in stocks.
They also recommend investing regularly through SIPs and adjusting investments as you get closer to buying the house.
Tax planning, such as staggering when you withdraw funds, is also crucial to maximize savings.
Experts suggest aligning mutual fund investments with the investor's time horizon to optimize down payment savings.
For under three years, experts recommend lower-risk funds like arbitrage or short-term debt funds.
For periods exceeding five years, diversified funds including flexi cap and mid cap funds can be considered.
Both experts recommend systematic investment plans (SIPs) to promote investment discipline.
Gradual portfolio rebalancing and tax optimization strategies are essential as the goal date approaches.
- Who
- Financial experts Kshitiz Mahajan and Tarun Birani offer advice.
- What
- Using mutual funds to save for a property down payment.
- When
- Investment strategies are tailored to different time horizons, from under 3 years to over 10 years.
- Where
- Specific locations of the experts or the investments are not mentioned.
- Why
- To facilitate home ownership by helping investors save for a down payment.
Short-Term Investment Strategies
Long-Term Investment Strategies
Investment Strategy
Short-Term Investment Strategies
Focus on capital preservation.
Long-Term Investment Strategies
Focus on wealth creation through equity investments.
Asset Allocation
Short-Term Investment Strategies
High allocation to low-risk instruments like liquid funds
Long-Term Investment Strategies
Increased equity exposure for potentially higher returns
- Expert 1
- Kshitiz Mahajan, Co-Founder of Complete Circle Consultants
- Expert 2
- Tarun Birani, Founder and CEO of TBNG Capital Advisors
- SIPs
- Recommended for investment discipline
- STPs
- Recommended for deploying lump-sum amounts gradually
- Short-term Funds
- For under 3 years: arbitrage, short-term debt
- Long-term Funds
- Over 5 years: flexi cap, multi cap, mid cap
