InvestorQ : If I have a corpus to invest, how do I go about investing?
Riya Dwivedi made post

If I have a corpus to invest, how do I go about investing?

Ria Jain answered.
3 years ago

If you have a corpus of Rs.10,00,000 to invest in the market but you are not sure what route to adopt; then what should you do? Let us say that you consulted 3 different advisors. The first advisor asked to put the entire money in an index fund to be saved from individual equity risk and will still earn equity returns. The second advisor asks you to split the money between equity and debt funds so that it will combine wealth creation and regular income. The third advisor tells you to opt for a systematic transfer plan (STP) where you can invest the entire corpus in a debt/liquid fund and systematically sweep a fixed sum of money each month into equity funds. The answer, based on these inputs, would be take a call based on what best suits you. For example, if you are conservative then you can prefer the index route to invest. Alternatively, you can also invest in a mix of debt equity. Debt gives you the stability and panache while equity gives you the much needed the alpha thrust.