I want to invest 10 lacs in MFs and start SWP of 25000 per quarter

We do not give specific fund advice. Your decision should be based on your risk tolerance level. You should also consult with your financial advisor. If you want assured returns on your investment, then you can go for fixed deposits. Whether you spend money for your parent's expense from your salary or through investment returns, the bottom-line for you is that, if the return on your investment is not sufficient to meet your parent's need, you will end up losing. You plan to invest Rs 10 lacs and your parent's annual income need is Rs 1 lac. This means you need a return of at least 10% per annum from your investment. Fixed deposit interest rates are now between 7.5 – 8%. Please note that the interest income is taxable. The bank will deduct 10% tax at source. So your effective post tax return will be around 7% after TDS. You may have to pay additional tax if you are in the higher tax bracket. Fixed deposit interest is added to your income and taxed as such, as per Income Tax rules.

Since you have a long term investment horizon you can consider investing in mutual funds. Since your primary objective is to secure regular income from your parents, you cannot afford to take too much risk in your investment. On the other hand, you also need to worry about inflation because you are looking at a 10 – 15 year investment horizon. Equity as an asset class has beaten inflation in the long term and created capital appreciation. Therefore asset allocation should be a mix of debt and equity, in other words, you can explore hybrid mutual funds. Since, you cannot afford to take too much risks, debt oriented hybrid funds can be a good investment option for you. Over a 10 year investment horizon, debt oriented hybrid funds have given 10 – 12% compounded annual returns. Mutual Fund monthly income plans are good investment options for investors looking for regular income and at the same get some capital appreciation. We have explained how Systematic Withdrawal Plans work Monthly Income Plans in our article, Mutual Fund Systematic Withdrawal Plans are smart option for income needs. To see the top debt oriented hybrid funds, please check our research link... Top Performing Mutual Funds - Hybrid Debt Oriented Funds.

You should discuss with your financial advisor and make the best decision that is suited to family's needs.