Where should I invest a lumpsum of Rs 35 lakh for three years?

I am 58 years old. I am planning to invest Rs 35 lakh in mutual funds for three years. Shall I go for a lumpsum investment or an SIP? I am expecting a return of 10-12 per cent after three years. Which mutual fund schemes are recommended if I go for a lumpsum investment?

-- Anil Sharma

Shweta Jain, founder and CEO, Investography, responds:

I wouldn't recommend equity mutual fund schemes to you since you have an investment horizon of three years. You should consider investing in debt and balanced mutual fund schemes for three years. You should also lower your return expectations to 10-11 per cent.

Here are my recommendations:


ICICI Prudential Balanced Advantage Fund: Rs 15 lakh
IDFC Credit Risk Fund: Rs 10 lakh
Aditya Birla Sun Life Corporate Bond Fund: Rs 10 lakh