Especially in volatile times like the ones we’ve been through recently, this may not be the most prudent way to invest.
So then, what can you you... Create an STP!
An STP or Systematic Transfer Plan, is a way of investing your lump sum amount in a staggered manner in a volatile market. It basically means you take your lump sum amount and invest it in a less volatile debt fund, and over the course of the next few months, keep transferring small amounts into a more volatile equity fund.
The whole point of doing this is that you get the advantage of rupee cost averaging by investing in a staggered manner.
This works best during times of immense volatility in the market (for example, election time in India!)
Have you received your bonus yet? What are you going to do with the amount! Tell us in the comments if you have any questions!
Best Investment Plans for your Bonus #shorts
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