How should I invest a windfall of Rs 30 lakh?

How should I invest a windfall of Rs 30 lakh?
-Manokamna

It depends on what you plan to do with this money. Formulate your plan and don't try to time the market. If you think this is a windfall which is once in a life time kind of thing, do your STP over the next 3 years. If you think this is a kind of windfall which will keep coming every four to five years, do it over the next one year. So, it depends on the importance and scale of money you are getting.

If it is a once in a lifetime windfall, be extremely cautious. Put your money in one or two debt funds of the companies whose equity funds you are going to invest. Make a lumpsum investment in the debt fund and give a standing instruction to move your money over the next 12, 24 or 36 months (as the case maybe) into the equity fund.

This article was originally published on March 07, 2019.