Where should I invest a lumpsum of Rs 20 lakh?

I am 33 years old and want to invest Rs 20 lakh lumpsum in mutual funds. Which are the best mutual funds for me to invest? My time horizon is 5 years.
-- Vanshika Paliwal

Dinesh Rohira, founder and CEO, 5nance.com, responds:

It is equally important to understand what kind of risk you’re comfortable along with objective you intend to achieve.
Although you have mentioned your investment tenure, the recommendation will be on the basis of assumption as few elements are missing in your question.


Nevertheless, a five-year time horizon is decent period to recommend diversified largecap and multicap funds along with quality short-term debt fund. Following are the recommendations –

HDFC Short Term Debt Fund (G) – 30 per cent
Aditya Birla SL Corporate Bond Fund (G) – 30 per cent
ICICI Prudential Bluechip Fund (G) – 20 per cent
SBI Magnum Multicap Fund (G) – 20 per cent

As you are planning to investment lumpsum, we will recommend you to follow staggered approach when investing in equity funds given volatile regime in equity market which is expected to continue for a while.