Hello Dev,
I will be up for a yearly bonus (to the tune of 1.7 lakhs) in a couple of months. I am thinking of investing that as a lump sum and doing so every year, as opposed to stepping up my investments by 5k each per month (for a total of 30k for six avenues) each year?
Ans: Planning to invest your yearly bonus as a lump sum sounds like a smart move. It offers the advantage of immediate deployment into the market, potentially capturing growth opportunities. This approach also simplifies your investment process, avoiding the hassle of adjusting monthly contributions.
However, keep in mind the importance of diversification and avoiding market timing. Consider spreading your lump sum across different avenues to manage risk effectively. Additionally, reviewing your portfolio regularly and rebalancing if needed ensures alignment with your financial goals.
Whether you choose to invest your bonus as a lump sum or incrementally, staying disciplined and committed to your investment strategy is key. A Certified Financial Planner can provide personalized guidance tailored to your unique financial situation and goals.