Can I invest Rs 20 lakh in mutual funds via weekly SIPs?

I broke my fixed deposit to buy a second house. But I changed my mind. Instead I want to invest in mutual funds through SIPs. I have Rs 20 lakh to invest in mutual funds for 10 months through weekly SIPs. Which are the best mutual fund schemes that will give better return than fixed deposit. I am planning to invest Rs 2 lakh per month and invest Rs 20 lakh in 10 months.

Is this okay? If yes, which mutual fund schemes should I select? Do you have any platform to buy or sell mutual fund schemes? If so, what will be the charges?

-- Suresh Gopalakrishnan

Abhinav Attal, senior vice-president, Wealth Management Product, Ladderup Wealth Management, responds:

Since you have a long-term perspective in mind, I recommend you to invest some portion in equity mutual funds. The term of investment will have to be at least five years or more. If you have a moderately high risk appetite, go for 50 per cent allocation in equity mutual fund schemes. Or you can invest 40 per cent in equity and 60 per cent in fixed income funds.

For investing in fixed income, I would ask you not to resort to SIPs. Instead, you can invest straight away. For fixed income, you can look at investing in debt accrual funds and fixed maturity plans (FMPs). You can chose the funds from the following options:


Aditya Birla Sun Life Medium Term Plan
UTI Medium Term Fund
ICICI Prudential Credit Risk Fund
L&T Credit Risk Fund
Kotak Credit Risk Fund
HDFC Credit Risk Debt Fund

For equities, you can resort to weekly SIPs for the next 10 months. You can look at investing in the following mutual fund schemes:

Reliance Large Cap Fund
ICICI Prudential Bluechip Fund
Axis Bluechip Fund
Principal Emerging Bluechip Fund
HDFC Equity Fund
Kotak Emerging Equities Fund
HDFC Mid-Cap Opportunities Fund

You can use a host of platforms to invest in mutual funds. For example, there is NSE’s NMF II, MF Utilities, and so on. They don’t charge for any transactions.