Given the market volatility, how should I invest ₹50 lakh? | Value Research Dhirendra Kumar explains how to invest a lump sum amount in a volatile market
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Given the market volatility, how should I invest ₹50 lakh?

Dhirendra Kumar explains how to invest a lump sum amount in a volatile market

Given the current volatility, where would you suggest investing a lump sum of Rs 50 lakh? I have a horizon of over 15 years or more. Also, would it be fine to spread it over 9-12 months?
- Sharan Singanamala

If this Rs 50 lakh has taken many years for you to accumulate or save, or it is a once in a lifetime bonanza that has come your way because you sold some family assets or realisation from any such things, spread it over the next three years. That is because you have a lot of time, about 15 years or maybe more.

Spreading it over the next three years monthly will ensure that you will not have any regrets because markets can be in a tailspin for a long time. India has been populated by extremely contrarian investors. Domestic and individual investors have invested money in all the market falls, while foreign investors have pulled out their money. Now the scale of money coming by way of SIP has been rising despite the market's wild swings.

So, you should invest through this volatile period. It is a great opportunity, but there might be a better opportunity ahead. For your investment, a conservative spread will be for three years, and if you want to be a little more aggressive, then it will be 12 months. What's more important is the vehicle you choose. For this, look at relatively smaller sized flexi-cap funds.


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