I would be receiving a lump sum from my PPF investment proceeds on completion of the tenure. What options do I have to invest this amount for the next 10 years in mutual funds?
— Priya S
When investing with a 10-year time frame you should consider investing in equity mutual funds. Ideally, equity fund investments should be systematic and regular to avoid a mis-timed market exposure. You come across being new to mutual fund investments and for the time frame that you mention, it will be a good idea to start a systematic investment plan (SIP) in a balanced fund such as HDFC Balanced, Canara Robeco Balanced or DSP BlackRock Balanced.
You can invest the lump sum proceeds from the Public Provident Fund (PPF) into a short-term debt fund of the same fund house whose balanced fund you choose. Initiate a systematic transfer plan (STP) from this fund into the balanced fund. Track the performance of the funds that you have invested in at least once a year to assess its progress or make any changes to the selected funds.
This article was originally published on September 30, 2011.
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