Do you have a lumpsum of Rs 10 lacs that you are looking to invest? There are several ways and investment options that you can consider investing a lumpsum amount of Rs 10 lacs which can help you achieve your financial goals. If you are clueless on how to efficiently use this lumpsum sum of money, do not worry. You are not alone. In this article, we will explore four different investment avenues that you can consider making a lumpsum investment.

How to use a lumpsum amount?

Here are four distinct ways in which you can use a lumpsum sum of money in an efficient and a smart manner:

  1. Replenish your emergency corpus
    One of the best ways in which you can use a lumpsum sum of money is by replenishing your emergency funds. It is recommended that an individual’s emergency corpus should always consist of a minimum of three to six months of their living expenses. This is because an emergency corpus can be highly useful in situations where in an emergency or a crisis takes place out of nowhere. Examples of such scenarios include paying for home repair, or any health contingency, losing a loved one, job loss, etc. A good place for investing this money could be liquid funds or other liquid instruments.
  2. Paying any existing debt
    Before you embark upon the journey of making new investments with the lumpsum amount, a better idea would be clearing your old, existing debts. You can begin by paying off your high-interest rate loans such as credit card debts, personal loans, or any other type of unsecured loans that can take a huge part of your earnings. You can slowly work your way from high-interest rate loans to low-interest rate loans to be entirely debt free.
  3. Invest invest invest
    Investing your lumpsum sum of money is always a good idea to ensure a financially secured for your and your family. Before you go forward on short-listing the right type of investment for you, it might be a good idea to take into consideration factors such as current income levels, liquidity, financial goals, investment tenure, risk appetite, tax implications, etc. Investors new to the investing world might consider investing their funds in mutual fund investments due to the professional management it provides to its investors.
  4. Spoil yourself
    You must be well-versed with this adage saying – ‘All work and no play make jack a dull boy’. This is applicable in the investment world as well. After allotting the lumpsum sum of money to refill your emergency funds, be debt free, and investing towards your goals, a small part can be used to pamper yourself. This can be anything from a new gadget to a luxurious trip to a shopping spree. This will serve as an emotional boost to your well-being.

These are a few ways in which you can utilise a substantial sum of money. It must be noted that there are other ways in which you can use a windfall of money as well. If you are still unsure on how to go about with your lumpsum amount of cash, you might consider taking the services of a financial advisor or expert. Happy investing!

Comments are closed.