Shorter the time target, less must be your equity exposure

Harsh Roongta of apnapaisa.com answered investor queries on CNBC-TV18 about personal finance. Check out his comments.

Below is the edited transcript of his answers. Also watch the accompanying video. Caller: I can invest Rs 20,000 per month. I want to earn around Rs 20 lakh in a time period of seven to eight years. I have investments in LIC, fixed deposits and NSC, and I have two dependents. How should I allocate the money?
A: Basically you already have a lot fixed deposits. So for Rs 20 lakh, that is, if you want to invest around Rs 20000 for a period of 10 years, I would suggest that you invest in diversified equity or even in top-capital equity. Essentially, you already have lots of debt schemes. I would recommend you do one of these two or three funds - Franklin India Bluechip, HDFC Top 200, Birla Sun Life Frontline Equity. You can pick and choose. This Rs 20000 could grow depending on the returns it could grow in 10 years to anywhere between Rs 40-53 lakh at an assumed return of around 14%. Caller: I can invest Rs 10,000 per month and am looking at investment through an SIP. My goal is Rs 10 lakh in five years, and I have no dependents. How should I allocate the money?
A: You don