|Current cost||Rs 12 lakh|
|Inflation||8 per cent|
|Cost after 4 years||Rs 16.32 lakh|
|Savings (monthly)||Rs 27,881*|
|Monthly savings' break-up|
|*Considering investments in equity-diversifie funds would return 12 per cent each year and debt investments (recurring deposit) returns 7 per cent a year.|
If you were taking a holiday in the near future, say in about less than a year, equity exposure could be risky.
Keep the money you require for booking flights, accommodation and so on in liquid funds. These will give better returns than a bank account would. Invest the rest in a fixed maturity plan or a bank fixed deposit that matures close to your travel date.
Image: Petra, Jordan