Have 10Lakhs, what to do?

POSTED BY Bond Bhai ON May 31, 2013 11:20 am COMMENTS (3)

So, My friend and I were talking and he mentioned he has 10Lakhs lying in his account. The Reason is why he so much money is he broke his FDs for a plot and somehow the deal did not go thru and now is left with 10L in his a/c! He said he would be putting all of it back into FD!! I suggested investing in MFs, but i could not go any further since i have questions/doubts myself.


1. He is already investing in SIPs. So would it be prudent for him to invest in MFs in a Lumpsum? Say nvesting in a Lumpsum, 2-3Lakhs in HDFC Top200 and some other Equity funds

2. He could invest Lumpsums in Liquid/Debt Funds and then do a STP int Equity Funds?


In case there is a high value transaction, would the Taxman send a notice for a “High Value Transaction”? Although its perfectly fine, just to avoid “headache” of replying back to the IT!


Any other ways/avenues available for him?

3 replies on this article “Have 10Lakhs, what to do?”

  1. Sachin says:

    One small suggestion, plesse give this forum url to your friend let him ask his query, dont spoon feed him 🙂 this way he will get know more things and Manish will get a new user.

  2. Ramesh says:

    What is the aim of this 10L?
    1. Retirement / Long term investment money – Put into equity funds.
    2. Holiday money – Short-term debt fund.
    3. Maybe-next-time-real-estate-investment money but do not know the date – Income debt fund.
    4. Same as above but not necessary – Part 1 and Part 3.
    Or any other combination.

    Once you got that amount into your account, it does not matter how you put it to use. The taxman can come and ask anytime.

    Do not take complicated paths to arrive at the same thing. Eg, if you want to put it into equity, then just put it lumpsum into whatever fund(s) you like. The STP/SIP business is complicated without any major advantage.

    The Long term income debt funds are providing big returns (4-6% returns in last quarter or so), so those are better options than the FDs.

  3. He can divide the 10 lakhs in to say 10 or 20 chunks and invest each time the sensex drops by about 2% (like today) over the next few weeks to 2-3 months.

    A STP also can be setp. Choose a liquid fund with week dividend option so that capital gains are zero and tax is no longer a problem (answer applicable to your other question also!)

    Taxman wont ask you. He can look it up himself. The bank has PAN information and so has the AMC! It not a problem as long as he doesn’t redeem within a year and then fails to pay tax.

    Other options can be only decided by him according to why he is investing. Same of course is true for MFs!

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