I need money in 3 years. Should any of that money be in equity?

Published 19 September 2026

Sumit from Pune

I have a financial goal about three years away, but I don’t want the money sitting in a low-return investment. Should I invest some of it in equity and hope for better returns?

Sachin Kabra ex-Director HDFC Private Wealth, Business Head Motilal Oswal AMC LinkedIn

The starting point should be the goal, not the fund name.

Money required in three years should not depend on what equity does over the next three years.

A goal that is 20 years away can absorb much more volatility than something you need in the near term.

That is why debt can hold money required for nearer-term goals and reduce the chance that you are forced to sell equity during a weak market.

The basic principle is to match the asset to the deadline.

“Money required in three years should not depend on what equity does over the next three years.”

“Retirement money 20 years away can absorb far more volatility.”

This is not personalized investment advice. Your goals, time horizon, risk tolerance and financial situation may be different, so assess your own situation and discuss it with your financial advisor.

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