Which mutual fund is best in the current market scenario

You are right about the market. The market has been range-bound for the past two or three months. There are concerns about slowdown in economic growth in India. Internationally, there are geo-political concerns, especially with the situation in Eastern Asia. If an investor has a very long investment horizon then it does not matter much whether investment is made in lump sum or STP, but since you have 4 year tenure, it will be more prudent for you to go through the STP from a liquid fund to the equity fund(s) of your choice.

Since we do not know your risk appetite, it will not be appropriate to suggest funds. You can select between large cap, diversified equity (multicap) and midcap funds depending on your risk appetite. If you are prepared to take more risk to get higher returns you can invest in midcap funds (please see top most consistent midcap funds in our tool Top 10 Mutual Funds in India – Equity Funds Midcap and Small Cap. If you are not prepared to take a lot of risk, you can invest in diversified equity funds (please see top most consistent diversified funds in our tool Top 10 Mutual Funds in India – Equity Funds Diversified). Large cap funds have the lowest risk amongst the three (please see top most consistent large cap funds in our tool Top 10 Mutual Funds in India – Equity Funds Large Cap)

Hope you find our suggestions useful.