There are many ways in which you can invest a lump sum amount in India. Currently, these are the most popular lumpsum investment options.
- Stock Markets– Buying stocks of different companies by extensively researching and analyzing the financial statements of companies.
- Real Estate– Buying a plot, flat, villa or commercial property for investment purposes. Although, it is advisable to take a home loan for tax benefits. Your rent income can be used for pay EMIs.
- Mutual Funds– The beauty of mutual funds as an investment option is that it caters to the needs and wants of every individual. It is one of the best ways to invest in India. The sheer number of options means there is a mutual fund for every need.
How to Do Lumpsum Investment in Mutual Funds?
The best way to invest your lump sum amount is by investing in any short-term or ultra short term debt funds for at least 4–5 months and then starting an STP(Systematic Transfer Plan) in any equity oriented scheme.
One example of this can be the following but make sure that the debt schemes have minimal or nil exit load as well as a low expense ratio. This will help you in getting the maximum returns from the Investment.
Both these schemes have no exit load and the expense ratio is between 0.15-0.30% which is fairly low.
Alternatively, the popular schemes in the same AMC where you can start an STP are