Answer
There are two situations that require different investments.
Work Step by Step
There are two situations that require different investments which are as follows :
1) Let us take the example of Marriage.
For the purpose of marriage, the money should be saved more in liquid terms like fixed deposits.
As it can be withdrawn easily after 3 years.
The proportion of the money that has been invested for fixed deposits depends upon the personal requirement of each individual.
Suppose that one keeps 20000 for 3 years in form of fixed deposits.
B) Now coming to the remaining 20000, one has to invest in such a way that the investment should bring the individual return but at lesser risk.
Investment in exchange-traded funds (ETF) is one suitable option as it minimizes the risk of means of diversification.
The ETF of 20000 for says $5 years will bring enough returns post-retirement requirement.
