Mutual funds to invest Rs 1 lakh for three years

I want to invest a lumpsum of Rs 1 lakh for three years. Which mutual fund schemes should I choose? I am investing through SIPs of Rs 2,500 each in Axis Bluechip Fund (Growth) and Kotak Standard Multicap Fund (Growth). I don't need a tax saving scheme?
-Yashaswini Sharma

It seems, you have equity mutual funds in your mind. But we would not recommend investing in a equity mutual funds with an investment horizon of three years. We believe that investors should not invest in equity mutual funds unless they have an investment horizon of at least five to seven years. A long investment horizon is extremely important in the current market conditions, as there is no clear view on the revival of the economy or how the world is going to eradicate the threat of the coronavirus pandemic. Hope you are investing in your existing equity mutual funds with a horizon of at least five to seven years.

Since you are investing for a short period of three years, you should stick to debt mutual fund schemes. Since the future interest rate scenario is uncertain, you should stick to short duration mutual funds.


Here are our recommended short term mutual funds: Best short duration mutual funds to invest in 2020