I have Rs 3 lakh in my bank account which I don’t need for the next 5-7 years. I have SIPs in a couple of funds. Should I increase my investments in them with this extra money or make fresh investments?
The most convenient route for you would be to increase the SIP contributions to existing funds
I have Rs 3 lakh in my bank account which I don’t need for the next 5-7 years. I have SIPs in a couple of funds. Should I increase my investments in them with this extra money or make fresh investments?
Sunil Tyagi, Gurgaon
As you are already investing in SIPs, the most convenient route for you would be to increase the SIP contributions to existing funds, provided these funds are faring well. As you do not need this money for 5-7 years, to make the most of the impact from this money, you should consider investing it soon than stagger it for more than 6 months. Depending on the number of funds in which you have investments, you could increase the SIP in them by Rs 25,000 to Rs 30,000 over the next 4-5 months and exhaust the entire Rs 3 lakh which you can spare to invest. You have not shared the names of the funds in which you already are investing, which would have helped to ascertain whether you should continue investing in them or add new funds to invest in.