Where to Invest Your Bonus

BONUS 

This is the time when most people will get their Bonus in the banks & start thinking about how to invest/Spend.

Well here are some ideas.

Create a Emergency Fund: The basic rule for any financial planning is to create an emergency fund which is an amount equal to around 3-4 times your normal monthly expenses (including all the EMI) to kept separately in avenues where they can be withdrawn in very short notice, You can create such fund by investing in Sweep In FD or Investing in Ultra Liquid Mutual Fund. 

Prepay Loans: Any Expensive Loans which you are currently paying e.g. Credit Card debt etc where the interest rate payable is higher than what you can earn by investing can be repaid.

Tax investments: You can make that tax investment, which normally is done in last months;  You can take the Term Insurance plan which you were planning, The health insurance plan which you were planning can be purchased in this money.

Plan for Future: Do you have any specific goals to be achieved over long term for which you want to save,start saving for them, If the goal is less than 5 years away invest in Debt Mutual Funds/Monthly Income Mutual Funds in one go, But For goals More than 5 Years away, you can go for Equity Mutual Funds, But pl. note You must never invest in Equity in one go, what  you can do is to invest the Amount in a debt Fund  & transfer the  amount over next 6 months in equal installments.

Spend: in case you want none of the above.