I recently received 10 lakhs which was invested earlier. Currently i invest 18k in parag parekh flexi, 15k in Navi nifty50, 15k ICICI pru s&p index, 8k quant mid, 8 k quant small,8k Motilal Oswal mid, 8k Nippon India small, 12.5k elss quant, 7.5k gold, 20k debt. Will be doing this for next 20yrs. How do I put my lumpsum of 10lakhs in this? Should I bulk invest or slowly put money in to these over next 6 months
Ans: Congratulations on receiving the 10 lakhs! That's a great opportunity to boost your investments for the next 20 years. Here's a breakdown of the two approaches for your lump sum:
Bulk Invest:
Pros: Takes advantage of rupee-cost averaging. The market fluctuates, so by investing everything at once, you capture some units at potentially lower prices. It's also simpler to manage, requiring just one investment decision.
Cons: If the market takes a dip right after you invest, your entire sum goes in at a potentially higher price.
SIP over 6 Months:
Pros: Provides a form of averaging as you invest across different market conditions. Offers some peace of mind if you're concerned about market volatility.
Cons: Misses out on the potential benefit of rupee-cost averaging if the market trends upwards. Requires more discipline to consistently invest each month.
Choosing the Right Approach:
There's no one-size-fits-all answer. It depends on your risk tolerance:
Comfortable with some risk? A bulk investment might be suitable.
Prefer to spread the risk? Consider SIPs over 6 months.
Here's a suggestion: Talk to a certified financial planner. They can analyze your existing portfolio (diversified across equity, debt, and gold - that's good!) and risk profile to recommend the best way to deploy your lump sum. They can even suggest a hybrid approach, investing a portion upfront and the rest via SIPs.
Remember, you've got a long investment horizon of 20 years. Stay focused and make well-informed decisions to grow your wealth!
