Which mutual fund is best to invest in for next 5 years

You have basically 3 queries for which our suggestions is as follows –

1. Fund need for another property – You can invest in short term debt funds as you need money anytime within 3 years. Please check top short term funds here.

2. Investment for 4-5 years – You can invest in equity saving funds and/or balanced funds as these are less volatile than pure equity funds. We can suggest equity funds only if you have more than 5 years of investment horizon. Please see the top performing balanced funds as well as top equity savings fund from the links provided.

3. Lump sum or STP – Given the current market volatility, our suggestion would be to go for STPs (12-15 month’s time frame) – First, invest the lump sum amount in liquid funds and then transfer a fixed amount weekly to the balanced funds and/or equity savings fund. Please note that the STP can be done within the same fund house only.

The above suggestions will ensure liquidity for your child’s higher education after 5 years. And you can also expect your targeted return of 10-12% from the above category of funds provided the investment horizon is 4-5 years.

Hope the above is helpful.

Thanking you in anticipation.