Public markets

I just got a payout. Lump sum now, or spread it into a SIP?

The short answer

History says that because markets rise more often than they fall, putting a lump sum in sooner has usually beaten drip-feeding it, since your money spends more time invested. But usually is not always, and a lump sum right before a fall feels awful, which matters when you are a founder already sitting on concentrated risk. A common middle path in India is a systematic transfer plan, where you park the money in a low-risk fund and move it into equity over a few months, so you neither sit fully in cash nor go all in on one day. If the amount is small relative to your net worth, just invest it and move on. If it is large, staging it can protect you from regret. Tax treatment of the parking fund and any exit loads change over time, so confirm current rules with a CA or a qualified advisor.

A curated summary to orient you, not advice. The resources below are the real value.

Go deeper, your way

4 hand-picked resources, 4 India-specific, 3 link-checked. Pick how you want to dig in.

🎓 Course
✓ Link checked India Free Beginner

Why we picked it The free, India-first walkthrough of what a mutual fund and an index fund actually are, direct vs regular plans, and how a SIP works.

Mutual Funds

From Zerodha Varsity by Zerodha Varsity

Open zerodha.com

People also ask

eChai Partner Brands