The Indian stock market has seen significant fluctuations recently, influenced by global factors such as crude oil prices and geopolitical tensions. To invest ₹10 lakh effectively, individuals should consider their risk profiles. Conservative investors are advised to allocate 50-55% of their funds in debt instruments like fixed deposits and debt funds, while 25-30% can go into equities, and 10-15% into gold or safe investments like the Public Provident Fund (PPF). Moderate investors should aim for a balanced approach with 40-45% in equities and debt each, while aggressive investors can prioritize long-term growth by allocating 50-55% to equities, with a possibility of going up to 80% for higher risk and returns. Experts also recommend maintaining 2-5% in liquid cash for sudden market corrections. Additionally, international exposure through funds can make up 5-15% of the portfolio, focusing on sectors like artificial intelligence and biotechnology. Despite market volatility, experts advise against completely exiting equities, as this can hinder long-term wealth creation. Instead, using a Systematic Transfer Plan (STP) to gradually invest can be more beneficial.