Ask ET Mutual Funds: Where should I invest a lumpsum of Rs 1 lakh?

I am 34 years old, married and have a son. I am working with a private company. I have SIPs in four mutual funds:
Axis Long Term Equity Fund (growth): Rs 3,000
ICICI Prudential Long Term Equity Fund (Tax Saving): Rs 2,000
Reliance Tax Saver Fund: Rs 2,000
ICICI Prudential Value Discovery Fund (Direct, dividend): Rs 1,500
Now, I am interested in investing in another Rs 7,000 per month and a lumsump of Rs 1 lakh for my child with a time horizon of 10 years. Please suggest some good funds for my portfolio. Also, any modifications to my existing portfolio if required.
I am also ready to take moderate/ aggressive fund.
-- Ersadul Haque

Veena Malgonkar, Certified Financial Planner, KM Wealth Solutions responds:

You have opted for the growth option in one fund and the dividend option in another fund. You have not mentioned what you opted for in the other two funds. Opt for growth option for all your investments to get the benefit of compounding over the years.


While investing, it is always to better to have some goals in mind. This will help you to figure out how much risk you can take and how much you need to invest to meet the goal.

As for your lumpsum invest, the valuations are a bit high now. So, you can invest the lumpsum in balanced funds. They will automatically rebalance if the market corrects. You may consider HDFC Prudence fund and ICICI Prudential Balanced Fund.

To start a SIP of Rs 7,000, you can invest in a large cap fund and a midcap fund. You can consider the following funds to start your SIP:
Motilal Oswal MOSt Focused 25 fund: Rs 4,000 per month
Mirae Asset Emerging Blue Chip fund: Rs 3,000 per month

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