Should I invest in lump sum or STP

It is very difficult to say which would be the exact method - lump sum, SIP or STP - to invest your 30 Lakhs for next 5 years or more. However, instead of investing in one way, you can try two as mentioned below. This we are suggesting considering that your investment amount is large, Rs 30 Lakhs.

Invest Rs 15 Lakhs in lump sum in large cap, balanced and diversified equity funds. You can consider SBI Bluechip Fund, Birla Sun Life Frontline Equity Fund, Birla Sun Life Equity Fund, Franklin India High Growth Companies Fund, DSP BlackRock Opportunities Fund, ICICI Prudential Balanced Fund, HDFC Balanced Fund and Kotak Select Focus Fund for this purpose. Choose not more than two funds from each category - Maximum 6 funds.

For the rest Rs 15 Lakhs, you can invest through weekly or fortnightly STPs (period maximum 12 months). You can invest in 3 liquid funds and transfer to 3 equity funds. Example - 1) Invest Rs 5 Lakhs in Mirae Asset Cash Management Fund and transfer Rs 9,700 per week to Mirae Asset Emerging Bluechip Fund. 2) Invest Rs 5 Lakhs in ICICI Prudential Liquid Fund and transfer Rs 9,700 per week to ICICI Prudential Value Discovery Fund 3) Invest Rs 5 Lakhs in DSP BlackRock Liquidity Fund and transfer Rs 9,700 to DSP BlackRock Focus 25 Fund. We have suggested 3 funds names as example but actual fund names in case of equity funds could be different. You can refer to the suggestions given for lump sum investments.

How STPs work? You can see here https://www.advisorkhoj.com/mutual-funds...

Hope the above helps! Thanks for writing to Advisorkhoj.