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Should I move my investment from liquid to a balanced fund?

Dhirendra Kumar tells whether one should switch from a liquid fund to a balanced fund

I'm 31 years of age and have already been investing in equity. I have a lumpsum of Rs. 10 lakh parked in liquid and arbitrage funds. I don't need this money for the next 5 years. Should I move it to a balance fund with an equal weightage in equity in debt
- Piyush

Since you have already been so conservative by investing in liquid and arbitrage funds, I would suggest you to be even more conservative. Go for equity savings fund, it is a much safer vehicle than a balanced fund. It invests only a third of your money in pure equity.

Also, spread your investments over the next one year so that the money is at work for next four years. You should be able to beat the fixed income return by a modest margin in five years.

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