Investing a lumpsum in a balanced scheme

I want to invest a lumpsum amount of around ₹5 lakh for five years. Should I choose a balanced scheme or an equity mutual fund? Also, suggest some funds.
- Kumar Ashay

Since your investment horizon is only five years, you can consider investing in one or two top-rated balanced schemes. Here is a list of best balanced schemes.

It would be a great idea to invest the money in a staggered manner in these schemes. Whenever you are investing a lumpsum in the stock market, there is always a risk of committing the entire amount at a market peak. If you stagger your investment over a period, you can rule out the risk. Even if you have a lump sum available, you should split it into at least six monthly installments. This will average out your purchase NAV.

This article was originally published on December 09, 2015.