Where should I invest a lumpsum of Rs 30 lakh?

Is it a good option to invest a lump sum of Rs 20 to 30 lakh at this point? I have selected the following equity mutual funds. My investment horizon is five years.
1. Mirae Asset Emerging Bluechip Fund
2. HDFC Mid-Cap Opportunities Fund
3. Sundaram Rural India Fund
4. Kotak Select Focus Fund
5. Birla Sun Life Tax Relief 96 Fund
--Abhijit Gawande

Harpreet Singh, Founder Vserv Capital Services, responds:

I have not gone into the historical and probable future returns of the mentioned funds as I feel that the markets are too expensive to invest lumpsum at this time. Five years is a good investment horizon but in today's markets this horizon may be just enough to break-even, have a little growth or you may even lose a small percentage of your capital. The funds are not bad but the idea of lumpsum investment at a market PE of above 25 is definitely not a good one. I suggest you put money in short term debt funds and systematically shift to equity over five years. This move will need to be reviewed periodically to decide if you need to accelerate the shift to equity if and when markets fall in between. You must do the same with the help of a qualified investment professional.