Where should I invest Rs 2 lakh for five years?

I will receive a corpus of Rs 2 lakh from my previous organisation and I want to invest it for five years. I read that it is best to invest in liquid funds and then start an STP option.
1. Is this the best strategy?
2. If yes, what are the best mutual funds available now to create a good fortune with a moderately high to high risk appetite?
-- Sesetti Sandeep

Chokkalingam Palaniappan, Director, Prakala Wealth Management, responds:

An STP is one of the best ways to invest bulk amounts. Investment through the STP option smoothens volatility and gives a better investment experience. While this protects downside, you may lose something on the upside. In a roaring bull market this strategy may not work as effectively as in a bear market or volatile market such as the current one.

Since you can take high risks, you may invest in SBI Small Cap Fund. Remember, the fund will accept only SIPs and STPs. And the amount of investment is restricted to a maximum of Rs 25,000 per month.