What can I do with this Rs 10 lakhs now ?

 Many of my friends and thier family members ask me , we have Rs 10 lakhs in cash what can we do with that ?

1) Can we invest lumpsum in stock market? or

2) Can we invest in bond alone ? or 

3) Can i invest in systematic investment plan (SIP) ?

So here we are going to see what is the perfect investment choise based on current economic situation.

As we all know Indian Stock markets are touching all time highs with unfavourable Globel ques. 

It seems except india all other major countries are either going on recession or will go. Does India is going to suffer because of this bad global situation? The answer is big YES. 

Why because India`s export is totally depends on those nations who are suffering in recession now. Because of this India`s export business is going to affect ( it already started which you can see through our IT stocks)

On the other hand due to continuos increase of interest rates to control inflation leads to Companies profit margin contraction and also banks increasing thier FD rates for attracting the new customers( which leads to margin cut in banks profits.

This also affected the Bond market - bond interest rates are increasing.The overall recession and other economic growth will be in track in future may be after 1 or 2 years.

Coming to the solution to my friend

For next 1 to 2 years, there will be no drastic growth in global economy, so our stock markets has less chance of going high or not going anywhere is high.

So my opinion is 1) Invest that Rs 10 lakhs in Bond ( Good rated) @ 9 to 10% Interest rate for 2 to 5 years with Monthly or Quarterly interest payout scheme.

For Rs 10 lakhs every month we will get rs 9000 as interest( considering @ 9%), we can do Systematic investment plan ( SIP) of that interest amount by investing every month consistently.

The benefit here is

1) For next 1 to 2 years we will get higher interest rates in Bonds 

2) We are investing (SIP) the Interest Amount so that if the share market give run up in this 2 years, we will not miss that.

3) Averaging - by doing SIP consistently we are getting the benefit of averaging the price. so that once the market gives run up we will be in massive profits.

KIndly Plan your Taxation parts because all the interest here are taxable ( sub to TDS).

Finally Is there any platform to invest in Bond Online ?

Golden PI Goldenpi.com, Wintwealth Wintwealth.com, etc.