Which mutual funds to invest Rs 25 Lakhs for 10 years

Your advisor is not wrong when he says that you should invest in balanced funds through STP of 6 months.

However given that your wish is to 'get maximum return in upcoming 10 years', you might as well invest in diversified equity funds. You can go for STP of 6-12 months maximum. Many experts, including us, may even suggest you to invest the entire amount in one go in lump sum as your investment horizon is 10 years!

The above is a call you have to take - whether to invest in lump sum or go with STP! Having said the same, we feel that 10 years a good period of time for you to get very good returns from diversified equity funds irrespective of whether it is invested in lump sum or through STP.

However, please note that the risk of investing in diversified equity fund is bit high compared to balanced funds. Your advisor has suggested you balanced funds because he thinks you should not take much risk with your investments. Please take his advise and invest in the appropriate category of fund based on your risk taking ability.

Some of the top performing balanced funds are - ICICI Prudential Balanced Fund, HDFC Balanced Fund, SBI Magnum Balanced Fund and Reliance Regular Savings Fund Balanced option.

Some of the top performing diversified equity funds are - Birla Sun Life Equity Fund, SBI Magnum Multi-Cap Fund and Mirae Asset India Opportunities Fund.

Hope you find the above suggestions useful. Thanks for writing to Advisorkhoj.