Table of Contents

Table of Contents

How to Invest ₹1 Lakh for 2 to 3 Years: A Simple Guide

How to Invest ₹1 Lakh for 2 to 3 Years


Hello everyone! Today, we’re diving into a fascinating topic: How to Invest ₹1 Lakh for 2 to 3 years. Whether you’re a kid or an adult, this blog is for you. Let’s explore where you can invest ₹1 Lakh in a smart and simple way, ensuring you get good returns without taking too much risk.

Understanding the Market

Is it a Good Time to Invest?

You might wonder, “Should I invest when the market is high?” Don’t worry! Even if the market is at its peak, you can still earn good returns. Historically, the market has provided decent returns even from its highest points.

Entry Point

The entry point is crucial. You can start by putting your money into a short-term debt fund or an arbitrage fund, which are safer options. Then, gradually invest in the stock market.

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Step-by-Step Investment Plan

1. Start with Index Funds (30% of ₹1 Lakh)

Investing in index funds or index ETFs is a great start. These funds track the market, giving your portfolio a solid foundation.

  • Why Index Funds?
  • They offer stable returns.
  • They provide good risk management.
  • Examples: Nifty 50 Index Funds, Sensex Index Funds.

2. Invest in Specific Stocks (70% of ₹1 Lakh)

Now, let’s break down where to invest the remaining ₹70,000. Here are some strong companies to consider:

Company 1: Britannia

Why Britannia?

Britannia is a well-known brand in India, famous for its biscuits, cakes, and dairy products. It’s a company people trust and love.

  • Products: Bourbon biscuits, Good Day, Milk Bikis, etc.
  • Market Position: Leading player in the organized bread market.
  • Financials: Strong sales and profit growth, low debt.

Financial Highlights

  • Sales Growth: 12% over the past 3 years.
  • Profit Growth: 13% over the past 3 years.
  • ROE: 66.6%
  • Debt Equity: 0.98%

Company 2: Mahindra & Mahindra

Why Mahindra & Mahindra?

Mahindra is a diversified automobile company. It makes everything from passenger vehicles to farm equipment.

  • Diverse Portfolio: Cars, tractors, commercial vehicles.
  • Market Strength: Leading in the rural market.
  • Innovations: Investing in electric vehicles (EVs).

Financial Highlights

  • Sales Growth: 17% over the past 3 years.
  • Profit Growth: 143% over the past 3 years.
  • ROE: 18.1%
  • Debt Equity: 1.65%

Company 3: Siemens

Why Siemens?

Siemens is a global leader in technology and infrastructure. It specializes in digital transformation and sustainable infrastructure.

  • Areas of Focus: Digital industry, infrastructure, mobility.
  • Government Contracts: Strong presence in government projects.
  • Financials: Consistent growth and minimal debt.

Financial Highlights

  • Sales Growth: 22% over the past 3 years.
  • Profit Growth: 36% over the past 3 years.
  • ROE: 15.40%
  • Debt Equity: 0.01%

Company 4: HDFC Bank

Why HDFC Bank?

HDFC is India’s largest private sector bank. It has a robust branch network and strong financial performance.

  • Branch Expansion: Adding 1,000 new branches in 2024.
  • Technological Innovation: Focus on digital banking.
  • Financial Health: Strong growth in profits and interest income.

Financial Highlights

  • Profit Growth: 34% jump in net profits.
  • Interest Income: Double-digit growth.
  • Branch Network: Expanding significantly.

Company 5: Larsen & Toubro (L&T)

Why L&T?

L&T is a multinational conglomerate involved in construction, technology, and green energy.

  • Project Expertise: Known for large infrastructure projects.
  • Order Book: Strong order book with significant international orders.
  • Financials: Healthy growth and diversified portfolio.

Financial Highlights

  • Order Growth: 46% year-on-year growth.
  • Profit Growth: Consistent performance.
  • Debt Equity: 1.56% (manageable given their project scale).


If you want to know How to Invest ₹1 Lakh for 2 to 3 years, consider splitting your investment into a mix of index funds and strong individual stocks like Britannia, Mahindra & Mahindra, Siemens, HDFC Bank, and L&T. This approach balances safety and potential returns, making it a smart choice for anyone looking to invest for the short term.

Remember, investing wisely takes research and understanding. Always do your own research before making any investment decisions. Happy investing!

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