Is it advisable to invest through STP

Glad to note you could realize that investing in fixed deposits / savings bank and PPF is not the best option, that too when the interest rates are falling.

The investments you are making in PPF can be allocated to ELSS funds. If you compare ELSS returns with that of PPF, you will notice that ELSS funds as a category has given over 19% annual returns in the last 5 year compared to PPF which has given around 8.25-8.50% returns in the said period. Please go through this article to know why ELSS is the best tax saving option for you https://www.advisorkhoj.com/articles/Equity-Linked-Savings-Scheme...

With regards to your investments in fixed deposits the same can be routed to debt funds. Debt funds provide better tax efficient returns than fixed deposits. You can try this research tool and can compare the returns of these products - https://www.advisorkhoj.com/mutual-funds...

Good that you have started doing SIPs. SIPs can create enormous wealth over a long period of time if your are investing in good equity schemes. However. while investing in mutual funds, select funds based on your risk profile and time horizon. For example - you should invest in equity mutual funds only when your risk taking ability is moderately high to high and the investment horizon minimum 5 years.

Please read how SIPs have created wealth in the last 15 years https://www.advisorkhoj.com/articles/Mutual-Funds...

Part of your annual savings of Rs 2 Lakhs can be invested through monthly SIPs (including investments in ELSS Funds for tax saving) and the rest through lump sum as and when the liquidity is available.

STPs - Yes, you can invest through STPs when you are not sure how the markets are going to behave in future. However, given the current market scenario, we would suggest that you should not go for very .long term STPs. You can start a STP maybe for next 12-18 months and not beyond that. However, if your investment horizon is long, say 5+ years, you can even invest in lump sum.

For investing through STP, you can go with diversified equity funds if your investment horizon is 5+ years. You can consider the following funds -

Birla Sun Life Cash Plus to Birla Sun Life Advantage Fund

SBI Magnum Insta Cash Fund to SBI Magnum Multi-Cap Fund

Mirae Asset Cash Management Fund to Mirae Asset India Opportunities Fund

Franklin India Treasury Management Account to Franklin India High Growth Companies Fund

Hope the above helps you. Thanks for writing to Advisorkhoj.