RupeeCase
Education . Windfall Timing . 3 of 3
So should you ever drip it in
Yes, sometimes. If a lump going in right before a drop would make you panic and sell, dripping is cheap insurance that keeps you invested. It cushions the bad year, down about 18 pct of the time instead of 22 pct, and shallower when it falls. Just keep it short, and be honest about why.
01
Already cash in hand? Put it to work. Waiting for a better entry is a market timing bet, and across seven markets and nearly a century it lost about two times in three.
02
If you must drip, keep it to three months. The longer you stretch it, the worse the odds. Every extra month in cash is expected return you are handing back for a feeling.
03
Your salary SIP is not this. That money was never a lump, it arrives in slices, so investing it in slices is right. Keep the SIP running. The penalty is only for the pile you already hold.
Dripping a windfall in is just risk wearing a calmer face.
General education on market entry, not investment advice. Figures are illustrative and drawn from published market studies. Past performance is no guarantee of future returns. No fund or stock is named or recommended. Match any decision to your own goals and risk profile.
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