I have an SIP of Rs 5,000 in HDFC Top 200. I have recently received Rs 1 lakh from an FD. I want to know if I should invest that Rs 1 lakh in lump sum in the same fund, or where can I invest it for 3 years to get higher profits. I don’t have a requirement of the money right now.
-Shivendra Bhatia
If you require the money after three years for a particular purpose, then you should consider fixed deposits, which also have attractive rate of returns today.
However, if you have an investment time frame of 5-7 years and you feel you won't require the money, then this is a good time to invest the money in equity markets. But don’t invest it in a lump sum. If you have received Rs 1 lakh because of a matured FD, invest Rs 25,000 for the next four months in HDFC Top 200, which is a well performing fund.
This article was originally published on December 13, 2011.
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