What to do when you have a lump sum amount to invest?

Greetings, dear friends. Continuing from my previous blog, the next item on the agenda is what to do with your savings.

How savings can be turned into wealth has already been discussed in my first blog (https://heetinvestment.co.in/how-can-you-convert-your-savings-into-wealth/).

So today am going to talk about ‘what to do when you have a lump sum amount to invest?”

There are quite a number of different asset classes to choose from, like real estate, gold debentures, equities, P2P, etc..

One can always choose to diversify their investments to keep them balanced. Real estate as an asset class not only gives regular monthly rental income but also can multiply your investment in the long run.

The biggest drawback of real estate is its affordability. What fascinates me most is investing in stock markets.

This is one such asset class which is not only affordable but gives a lot of opportunities in multiple ways.

The stock markets allow you to invest in the biggest and finest companies in the world, be a part of their success as shareholders, and enjoy returns in the form of dividends and capital appreciation.

Stock markets are volatile and share prices of companies oscillate, allowing you to trade as well as bifurcate your lump sum amount.

Bifurcation can help to diversify amounts in different sectors as well as regularise periodical investments. A big chunk of money can be invested during a market crash.

A recent example would be the Covid crash in 2020. Prefer to take guidance from an experienced advisor in case you can’t dedicate sufficient time to research or understand stock markets.

A newer asset class is P2P, which is peer to peer lending. Peer-to-peer lending has been gaining popularity in recent times, which allows you to earn regular EMI.

I will be sharing more details about peer to peer lending in my next blog. 

About the Author :