Ask ET Mutual Funds: Where can I invest a lumpsum of Rs 5 lakh?

I am planning to invest in a balanced fund for a long period through the SIP mode. Suggest me some good funds. Also, my father wants to invest Rs 5 lakh as a lumpsum in mutual funds in two to three months. Given the current market conditions, is it wise to invest a lumpsum? The time horizon is three to five years. I am thinking to divide the money in following funds: ICICI Prudential Balanced Fund, L&T Prudence Fund, SBI Bluechip Fund, L&T India Value Fund, ICICI Prudential Value Discovery Fund. Kindly review the fund choices.

--Sayaneel Kar

Vishal Ramaswamy, a mutual fund advisor, responds:

ICICI Prudential Balanced Fund, HDFC Balanced Fund, Birla Sun Life Balanced 95 Fund, L&T India Prudence, and Canara Robeco Balance Fund seem good choices. Out of these, I would recommend ICICI Prudential Balanced Fund or HDFC Balanced Fund with a three-year horizon for the SIP and a holding period of five years. Review performance at the end of three years and then renew or change the fund based on its performance.

I am strictly against investment of a lumpsum amount in mutual funds and given the current local and global political scenario, I would advise against it. You should invest the amount via STP/SIP in three funds SBI Bluechip Fund, HDFC Mid-Cap Opportunities Fund and L&T India Prudence Fund.


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