Investment horizon!

If you have investment horizon of 5 years to build your down payment corpus for home loan, then you can consider investing in equity mutual fund schemes through the SIP route. As we mentioned before in past feeds, equity as an asset class beats all fixed income instruments by a wide margin. However, if your investment horizon to build the corpus is less than 5 years say 3 years, then you can consider investing in fixed income instruments like FDs or short-term debt funds.