Got a ₹10 lakh bonus? It's a fantastic opportunity! But how should you invest it for max returns: all at once (Lumpsum) or steadily over time (SIP)? Let's break down this common dilemma.
Investing your entire bonus at once (lumpsum) can bring stellar returns if the market immediately rallies. But the catch? Market timing. Invest before a dip, and your portfolio could face unsettling temporary losses.
Systematic Investment Plans (SIPs) spread your bonus over time (e.g., ₹50k/month for 20 months). This leverages 'rupee cost averaging,' buying more units when markets are low and fewer when high, smoothing out volatility.
For your ₹10 lakh bonus, a 'Phased Investment' is often best. Invest 20-30% (₹2-3 lakh) as a lumpsum immediately, then SIP the remaining ₹7-8 lakh via STP over 6-12 months. Balances participation with risk management.
This approach ensures you don't miss out on immediate rallies while still benefiting from rupee cost averaging on the larger sum. It's pragmatic, reducing anxiety in volatile markets and giving peace of mind.
Don't try to time the market, ignore your personal risk tolerance, or invest without a clear goal. Avoid putting all eggs in one basket and prevent analysis paralysis by taking action!
Ready to make your ₹10 lakh bonus work for you? Use our SIP Calculator to visualize your potential returns and plan your investment journey today! Visit sipplancalculator.in to start planning.