Where to invest Rs. 2 lacs right now?
Hi folks,
Personally, I thought I should invest in the index fund. Because, I don't want to take the risk with this amount.
But I would still like to know 2 things -
- Is the index fund fine?
- Is it the right time to invest in lumpsum Or should I do an SIP of 20k?
Any help would be appreciated.
Thanks in advance :)
We don’t know your risk profile, but your statement gave me a hint of conservative.
For a conservative investor in the current market situation, I will do 2 step investing.
- Put 1.6/1.8L in arbitrage/liquid fund
- Start monthly index investing with 20k
If I see 2.5% correction in index, I will move 60k in index from arbitrage/liquid. If index sees more than that, I will transfer rest of the amount to index.
The above method will preserve my capital & gains both.
But why do so much magajh mari? Let it stay in bank account and do SIP?
You can keep everything in bank account for 3% returns and slab taxation.
Arbitrage/liquid will give you 6-7% and for arbitrage taxation is equity linked.
Overall, to make money, some magaj maari is required 🙂
Invest the entire thing in a Debt Mutual Fund and have a Systematic Transfer Plan (STP) into an Equity Mutual Fund. Your risk exposure is lower this way and your money is out of your hands so you don't end up spending it
Correct. I had invested 2.5lacs in mirae asset debt fund and then stp of 15k in tax sever and bluechip have me too good returns. Stp has one advantage that your fund is getting some appreciation in debt investment
Had posted the same question 3 months back when I had 10L to invest, the same people answered that the market has topped out and it’s not wise to go for it. The only thing I’ve realised is there’s no right time, if your investment horizon is over 5 years, just make it a habit to keep investing every month.
Indian equity market is far from topping out. We have immense growth potential for next 10-15 yrs in the minimum. The sooner you start investing, the sooner you will get to enjoy the fruits