Mutual funds for a risk-averse new investor

I am a complete beginner in mutual funds. I would like to build a corpus of Rs 10 lakh in three years for a goal. I don't have any investments in MFs. What fund(s) should I invest in and how much to invest through SIP? I am averse to take certain risks and can I achieve the required amount by investing in a single fund?
--Nilanjan Mal

Mutual funds carry risk. Debt funds have comparatively lower risk. Equity funds have higher risk. So, if your idea of investments is like a bank deposit, you should not invest in mutual funds. Mutual funds do not guarantee any returns. Also, since you have to achieve your goal in three years, we do not recommend investing in equity mutual funds. We recommend equity mutual funds only if investors can invest for seven years. Equity can be extremely risky in the short term.

You can use bank recurring deposits or debt mutual funds for a three-year goal. Assuming an annual return of 6%,you need to invest around Rs 25,295 every month to create a corpus of Rs 10 lakh in three years.