How can I invest a lumpsum amount of ₹5 lakh for a period of 15 years for the purpose of child’s education? Shall I opt for an STP? Can you suggest some good mutual fund schemes for the same?

- Lalit

The mutual fund route is an excellent method to save and invest for meeting child education expenses. The idea is to save on a regular basis to meet the expenses for meeting the higher education costs. The best way to go forward would be to save by means of Systematic Investment Plan (SIP) on a regular basis.

However, since you have a lumpsum of ₹5 lakh to invest, I would recommend investing in a balanced fund like HDFC Balanced Fund for a
period of 15 years. If you want, you can do two separate transactions in a month of ₹2.5 lakh each.

This fund is in existence since September 2000. The fund has delivered 16.88 per cent CAGR since its inception. Consistency of
performance and a well-managed scheme makes this fund a good option. Balanced funds invest approximately 65 per cent into equity and the balance in to debt products.

- AK Narayan, Founder, AK Narayan Associates