Should I invest through STP route or in lump sum

I am looking to invest 10 lakhs via STP. I am 27 years old, with risk appetite moderately high and want to invest for 5+ years. I want to first invest 10 lakhs in a short term debt fund and then via STP invest 80% of the amount in Largecap and Midcap funds over a period of one year. Can you please tell if this strategy is ok or should I invest lumpsum in my targeted funds? Also can you please suggest the best large cap and mid cap funds or any other funds based on my risk profile?

Mar 27, 2017 by Jaiveer Kalia, Chandigarh | Mutual Fund

Your strategy to invest via STP - short term debt fund to equity - is a good one over investing in one go in lump sum. It would even be better if you could go for weekly STP instead of monthly.

With regards to choice of funds in large cap, the current top performing funds are SBI Bluechip, Birla Sun Life Frontline Equity, Kotak Select Focus, ICICI Prudential Focused Bluechip. In the midcap space you can select from Mirae Asset Emerging Bluechip, SBI Magnum Midcap Fund, L&T India Value Fund and Kotak Emerging Equity Fund.

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

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