How to manage a Lump Sum of Money?
If you receive a lump sum of money, it's important to consider how you can use it to achieve your financial and personal goals
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Pay down debt: One of the best long-term investments you can make is to pay off high-interest debt now
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Build your emergency fund
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Save and invest
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Treat yourself
Lumpsum means that amount is to be invested in one go & Plan According to your Need. There is Method where Lumsum amount can also be planned properly to Invest in Mutual Fund & get the Benefit of Rupee-Cost Averaging. Another Method is for Retired People or People Looking for a fixed income by investing a Lumpsum amount in MF is called SWP.
STP(Systematic Transfer Plan)
- It is a method of investing in
mutual funds. Under the Systematic Transfer Plan (
STP) method of investing an investor transfers a fixed amount of money from one category of the fund ( Liquid Funds ) to another in a fixed interval- usually from a debt fund to an equity fund
Systematic Withdrawal Plan (SWP)
- is a facility offered by mutual funds through which an investor can withdraw a pre-determined amount at pre-decided intervals from his/ her investments in select mutual fund schemes.
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STP /SWP Methods| Connect for the more Info.
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