How to invest 30 Lakhs for my father

Before investing in any product, be it FD or mutual funds etc. you must know what is the risk profile of your father? Since you know the goal, i.e. wealth creation and the time horizon. i.e. 3-5 years, knowing his risk profile will help you decide which asset to invest in?

For example - if he is a conservative investor he should invest part in fixed deposits and part in debt funds.

If he can take moderate risk, then balanced funds could be a good choice. if he can take higher risk then large cap and in case of highest risk mid cap and diversified equity funds could be good choices.

However, as the goal is wealth creation, then fixed deposits are not ideal investments. In that case he is left only with the choice of investing in balanced and equity mutual funds.

Therefore, we suggest that if his investment horizon is 5 years, you may recommend him to invest in balanced funds or equity funds, depending upon how much risk he can take. You can assume 12-13% annual returns from balance funds and 13-15% from equity funds over 5 years period.

From balanced fund, you can choose ICICI Prudential Balanced Fund, HDFC Balance Fund, SBI Balanced Fund, L&T Prudence Fund or DSP BlackRock Balanced Fund.

From large cap fund, SBI Bluechip, Birla Sun Life Top 100 and DSP BlackRock Focus 25 Funds can be chosen.

From diversified category of funds, ICICI Prudential Value Discovery Fund, Birla Sun Life Advantage Fund and SBI Magnum Multi-cap funds can be good choices.

Hope you find the above helpful. Thanks.