Multiple choice

Which of the following would you suggest, if your client suddenly wins Rs.1 Cr in a game show?

  1. Invest whole amount in equity directly

  2. Invest half in equity mutual funds and the other half in debt mutual funds

  3. Invest in money market mutual fund till the time he decides on the use of the money

  4. Spend, gift and invest as per his wish
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Parking a windfall in a money market mutual fund is prudent as it provides liquidity, safety, and reasonable returns while the client decides on the use of the money. Immediate equity investment exposes to volatility, splitting without a plan isn't advisable, and unrestricted spending defeats wealth preservation.

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