Ask ET Mutual Funds: Where should I invest a lumpsum of Rs 3 lakh?

I want to invest a lumpsum amount of Rs 3 lakh for a period of 10-15 years. Please suggest me some good mutual funds with value wise breakdown. I want to invest the amount in the first week of April.
--Kushal Das

Since you have a longer time horizon, 10-15 years, you can invest in equity mutual funds. However, it is not a great idea to invest a lumpsum in equity mutual funds which invest in stocks. By investing a lumpsum, you may enter the stock market at a higher level, which may increase the purchase cost and reduce the returns. Also, the valuations in the equity market are currently stretched.

So, it is better to stagger your investments over a few months. Staggering your investments help you to reduce the risk of investing at the wrong level and average the cost of purchase. You can park the money in a bank and start a Systematic Investment Plan (SIP) in a few equity mutual funds or park the money in a liquid scheme and transfer the money to some equity schemes through a Systematic Transfer Plan (STP).


You can choose few schemes from our recommended equity mutual fund portfolio.

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