1)I have five lakhs in hand.Please suggest me some funds to invest this lump some amount of money at once.

I would recommend not to invest this all at a time.Instead invest in small amounts every month in the form of SIPs. Here are some good funds which are performing currently well in the market.

Diversified Equity : DSP BR TOP 100, HDFC TOP 200, BSL Frontline Equity (Plan A).
Debt Funds : Fortes flexi debt fund , canara robecco income funds.
Tax saving funds : BSL Tax Relief '96, SBI Magnum Tax gain, Canara Robecco Tax saver.

Any time don't go for more than 6 funds. Your investment ratio should 80:20 for diversified and debt funds respectively.

2)I want to invest 3000/- rupees every month towards mutual funds.Can you suggest how to start with?

It depends on how much risk you can bear.If you want to take high risk,then you can go for mid cap funds like Reliance Growth Fund, Large cap funds like DSP BR TOP 100 or HDFC TOP 200. Incase of thematic funds you can for DSP BR Tiger fund or ICICI Prudential infrastructure fund.

Mutual Funds Q&A

1)I am planning rs 1000 each in three funds every month as part of SIP.I chose Sundaram BNP Paribas smile,Release Regular savings tax equity,Magnum Contra, HDFC Top 200 and UTI Opportunites Fund. Please help me choose which three out of these are better?

Sundaram BNP smile and Reliance regular savings equity funds are performing with 5 star rating.These two invest more in midcap funds.Don't invest in two midcap funds in your portfolio.So, choose one of these two midcap funds.To select the other two schemes, HDFC top 200 and UTI has 5 star and Magnum contra has four start rating.Choose any one of these with high ratings.

2)I have been investing in SBI Magnum tax gain since 2006.Recently 3 years lockin period term was over.Should i continue or to quit ?

Magnum tax gain has four star rating.In 2009, it returned a profit of 96.5 %.Last five years , it returned a profit of 32%.This scheme is a diversified equity that invests in variety of sectors.If your portfolio already has equity funds you can withdraw this scheme.Or,you can continue depending on your risk bearing capability.

3)I would like to go for a 10 year SIP with the following portfolio.Am i right in investing rs 14000 in these schemes everymonth?
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HDFC TOP 200 3000
DSP BR TOP 100 equity 3000
Magnum Contra 2000
HDFC prudence 2000
ICICI prudencial Infra 2000
IDFC Premier equity 2000
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All the above listed funds are performing well in the market.But, better invest in four funds at a time in your portfolio to easily manager your funds.Choose one of these large cap funds HDFC TOP 200 or DSP BR TOP 100. Then, balance your folio with a mid cap fund i.e IDFC premier equity. HDFC Prudence invests in Equity as well as debt.Instead of this go for a complete debt fund i.e Fortes flexi debt fund. Stay away from Magnum Contra and invest in Infrastructure ( Energy, cement, Industrial manufacturing,metal etc..) fund i.e ICICI prudential Infrastructure Thematic fund.So, choose four schemes and divide your 14000 among those as follows.

HDFC TOP 200/ DSP BR TOP 100 - 3500
IDFC Premier Equity - 3500
ICICI Prudential Infra - 3500
Fortes Flexi debt fund - 3500

Mutual Funds Q&A

Answers from dheerendra kumar (Value research online).

1)I want to invest a sum of 1500 rs towards MFs for a period of five to seven years.Please choose a good fund to invest regularly?

If you are a first time investor or a beginner, better choose balanced funds.To do this, you can go for Franklin templeton india balanced,HDFC prudence, DSP BR balanced funds.

2)I am 29 years old.My wife depends on my income only.Taking longterm investment plan into consideration,i want to
invest in HDFC TOP 200,DSP BR EQUITY, MAGNUM CONTRA, sundaram BNP tax saver or SBI magnum taxgain and reliance growth fund.After one year,to balance port folio i would like to choose kotak flexi debt fund.is my decision right?

All the above mentioned funds are performing well in the market in various sectors.Your portfolio looks well diversified.With out any change from your portfolio.You can go a head. SBI and sundaram tax saver both are performing well. You can go for Birla Sunlife TaxRelief'96 also.

3)Which one should i choose , Birla Sunlife Tax Relief'96 or Canara Robeco Tax Saver?

Canara Robeco tax saver invests in midcap where BSL Tax Relief'96 invests in large cap.In the year 2008, Tax saving funds recorded an overall loss of 55.67 percent.BSL recorded 62.67 where as Canara recorded 46.85 percent.But, over a period of time both of these will perform well in the market.

4)My father who is retired would like to invest a sum of RS 3 lakhs in mutual funds.Please choose a fund with out risk that would pay in the form of pension/dividend every month?

First thing one needs to remember is mutual funds cannot perform with out market risks.Retired people take low risk.So debt funds are the best resort for monthly income.Debt funds are less risky compare to equity funds.Choose a better debt fund according to your investment term.You can choose one of these funds - Fortes flexi debt,Birla sunlife dynamic band, Canara Robeco Income funds. Or for zero risk, go for post office senior citizen saving scheme.This is a 5 year investment scheme which gives interest every three months.

5)I want to invest rs one lakh in MFS for SIP. Help me choose one good fund for one year period.

To invest for one year, choose debt funds. JM Money Manager Super or Fortes flexi debt fund are fine to do this.