As I am new to mutual funds which fund should I invest in

Thanks for showing interest to invest in mutual funds.

As your investment horizon is only 3 years both for the lump sum and the monthly SIP of Rs 2,000, no mix of funds can be suggested to you excepting debt funds. Equity funds or balanced funds could have been suggested to you had your investment horizon been 5 years.

You can invest the lump sum amount of Rs 40,000 in ICICI Prudential Long Term Growth. You can also start the SIP of Rs 2,000 in this fund. Please check the details here https://www.advisorkhoj.com/mutual-funds...

After 3 years, you can redeem the investments and invest in Hybrid Debt Funds (MIPs) or Balanced Funds which has good track record of paying monthly dividends as you requirement is to get a monthly income after 3 years. However again note that, these two category of funds are suitable only if you have 5 years investment horizon.

Please check this link to know the funds from respective categories paying monthly dividends https://www.advisorkhoj.com/mutual-funds...

Also, as you are new to mutual funds, our suggestion would be to consult a mutual fund advisor in your city and take his help in your investments.

Thanks for writing to Advisorkhoj.