How to make a smart investment of ₹10 lakh? Make a strong wealth plan through SIP, STP and FD!

When you get a huge amount like ₹10 lakh in your hands through sale of a property, bonus, retirement benefits or savings, the first question that arises is where and how to invest it? Often, due to panic or lack of information, people put the entire amount in one place (like only FD or the entire stock market). But financial advisors believe that investing all the money in any one asset class can be risky. A smart investment of ₹10 lakh is one that is diversified as per your financial goals, time horizon and risk tolerance.

4-Step Smart Strategy for Investing Rs 10 Lakh

1. First create an emergency fund

Of your total money before you start investing ₹1.5 lakh to ₹2 lakh Keep the amount in a liquid fund or high-interest savings account. This money will be used to meet any medical or unexpected expenses of you or your family, without affecting your main investment.

2. Debt Fund or FD (Debt / Fixed Deposit) for safe returns

• Allocation: 20% to 30% of the total amount (approximately ₹2 lakh to ₹3 lakh).

• strategy: This money in FD or Senior Citizen Savings Scheme (if applicable) gives safe interest. Also, if you want to invest money in the stock market, invest the lump sum money first instead of investing it directly in equities. Liquid/Debt Fund Keep in.

3. Entry into equity through STP (Systematic Transfer Plan)

Investing a lump sum of ₹5-6 lakh directly in an equity mutual fund may result in loss if the market falls.

• What is STP? You give instructions to transfer a fixed amount (say ₹25,000 to ₹40,000) every month from a liquid fund to an equity mutual fund (Large Cap, Flexi Cap or Index Fund).

• Benefit: This will give you Rupee Cost Averaging Benefit is obtained and the effect of market fluctuations is reduced.

4. SIP and asset allocation for long term

If you are investing for the next 5 to 10 years, divide your portfolio like this:

3 mistakes to avoid while investing Rs 10 lakh:

1. Do not invest all your money in the stock market at once: Whether the market is at an all-time high or is volatile, always choose the STP/SIP route.

2. Understand Tax Implications: There is a 20% STCG tax on selling equity mutual funds before 1 year and 12.5% ​​LTCG tax on profits above ₹1.25 lakh after 1 year.

3. Don’t get into equities for short periods of time: If you need the money within 1-2 years, then choose only debt funds or bank FDs.