Got your yearly bonus? Where and how to invest it smartly

It’s that time of the year. Your annual bonus has finally landed. You are running different permutations in your head. Should you splurge it on a lavish vacation or that latest gadget waiting in your cart? But what if we told you to save some and invest it? Splurging, no doubt, will bring you short-term excitement, but making smart investments is how you set yourself up for long-term success. So, let’s talk about how you can invest your lump sum bonus in a way that makes it more than just a fleeting thrill. Break the bonus into SIPs (6 to 12 months) Instead of putting your entire bonus into a single investment, split it into smaller chunks and invest over time through SIPs. By committing to a fixed amount each month, you’re averaging your purchase price. This means you buy more units at a lower price and fewer units at a higher price, which brings down the average cost price. Why not lump sum investment? Lump sum investments can be like playing the stock marke

This article was originally published on June 12, 2025.