It has been proven that goal-based investment approach helps in ascertaining which asset class to invest in, depending upon the time horizon for each one of them.For long-term goals, equity and equity oriented funds could be the best bet. However, considering the tendency of the stock market to turn volatile from time to time, a strategy of investing in a disciplined manner can not only help in tackling volatility but also turn it to one's advantage through "averaging".

Someone with a lump sum amount but not willing to commit all the money at one go, a Systematic Transfer Plan (STP) could be the ideal strategy. Investing through STP could also allow a new investor to redefine his risk profile and enhance exposure to equities in a carefully planned manner.

However, investing a lump sum amount at one go too can be a good strategy for a longterm investor who has an existing equity fund portfolio built through a core strategy of systematic investing. Remember, a mix of lump sum and systematic investing, over longer periods, has the potential to yield better results than investing systematically alone.