Right now I have corpus of 20 Lacs, which is not required till 10 years. I prefer to invest this in equity mutual fund. But considering the volatility in this year 2023, is it better to invest in debt first & switchover later to equity. Or should i invest entire amount in equity mutual fund right now.
Ans: Hi Shailesh, thanks for writing in. Considering you have a large corpus you do not need immediately, you can invest using a Systematic Transfer Plan.
You first invest your 20 Lakh in a debt fund and then place instructions to redeem the units of a certain value every month/quarter and invest the redemption proceeds into an equity scheme.
This way, you can reap the get the stability of investing in debt while you continue to systematically invest in equities and get the benefit of rupee cost averaging of the SIP mode.