Where to invest lumpsum
Investing a lump sum amount can be a daunting task, especially when there are so
many investment options available in India. The right investment option depends on
various factors such as investment objectives, risk tolerance, investment horizon,
and financial goals. In this podcast and article find where to invest your lumpsum money.
9 different lumpsum investment options
Here are some investment options that can be considered for investing a lump sum
amount in India
Fixed deposits are a popular investment option for those who
want to invest their money for a fixed period and earn a fixed rate of interest.
Banks and non-banking financial companies (NBFCs) offer fixed deposits with
different tenures and interest rates. Fixed deposits are considered a safe
investment option as they provide assured returns.
Mutual Funds for lumpsum investment
Mutual funds are a popular investment option for those who
want to invest in a diversified portfolio of stocks and bonds. Mutual funds are
managed by professional fund managers who invest the money in different
securities, depending on the investment objective of the fund. Mutual funds
are available in different categories such as equity funds, debt funds, and
hybrid funds, depending on the investment objective and risk profile.
Equity shares are a popular investment option for those who
want to invest in the stock market. Equity shares provide investors with
ownership in the company and the potential to earn higher returns. However,
investing in equity shares involves higher risks than other investment options,
and investors should have a long-term investment horizon and a high-risk
Public Provident Fund (PPF)
PPF is a popular investment option for those
who want to save for their retirement. PPF is a government-backed
investment scheme that provides tax-free returns and offers a fixed rate of
interest. PPF has a lock-in period of 15 years, and investors can invest a
maximum of Rs. 1.5 lakhs per year.
Real estate is a popular investment option for those who want to
invest in physical assets. Real estate provides the potential for capital
appreciation and rental income. However, investing in real estate involves
higher risks than other investment options, and investors should have a long-
term investment horizon.
Fixed Income Products
Fixed income products provide standard fixed
income for the entire tenor. We have Non convertible debentures & Bonds.
The investment tenor ranges from 2 to 10 years.
You can also buy from secondary market for a year or so.
Another investment option which is available in the
market is structured products. You can choose to invest in equity as well as
debt funds and you can get fixed returns or based on the market condition.
The minimum investment amount starts from 1 lakh and in multiples there off.
Fractional Real estate Investment
Fractional ownership helps to invest part
of your lumpsum investment in commercial property. Generally commercial
property will run into crores and this mode of investment helps you to invest
with a smaller lumpsum amount itself.
PMS & AIF
If you have more than 50 lakhs, you can invest in PMS. If you
have more than 1 crore, then you can invest in AIF. Both these investment
options provides different options like equity, debt, private equity etc.
How to choose an Investment option ?
You should be clear on whether you need regular interest or fixed income from your
lumpsum investment. Only Fixed income products or debt products can provide such
If you are looking for capital appreciation with risk tolerance then you should choose
equity and other such investments.
Investing lumpsum amount requires careful consideration of various investment
options and factors such as investment objectives, risk tolerance, investment
horizon, and financial goals.
Investors should diversify their portfolio and choose investment options that suit their
investment objectives and risk profile. Investors should consult with a financial
advisor before making any investment decisions.