Given the current market level, is it fine to invest a lumpsum in a debt fund and further invest in balanced funds through STP over the next two years?
- Sandeep Bhogra
It is a great move. If you have developed a plan and have great belief in it, stick to it. It is a conservative plan. You are investing in a balanced fund and spreading your money over the next two years. I assume it is a sizeable money. This will also transalate into some opportunity losses, looking at the market in the last 2 to 3 months. Suppose if you would have invested the money at the outset in a balanced fund, it would have gone up much more than what it is earning in a short-term debt fund.
But making a plan and sticking to it will give you the real benefit in 2 to 3 years, once you would have seen the ups and downs during this period and would have also benefitted from it.
Even if it translates into an opportunity loss this is a plan which has to work over a lifetime. One year opportunity loss is not something you should be worried about.