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what is the investment goal atleast you plan a 5 years fixed deposit in a bank and you suggest him a low risk equity as sip. If everything in liquid or a debt fund, there is no need for your advice, let him wisely go to his own bank.

U CAN GO FOR SWP PLAN IN M.F. IN SOME GOOD LIQUID FUND OR GOOD DEBT FUND OR BOND FUND. BUT IF YOU WANT SAFE & GUARANTED M.I.P. THEN GO FOR F.D. OF GOOD CO., LIKE HDFC, MAHINDRA, OR BAJAJ FINANCE.

Assuming the returns of FD at 9.5% the interest earned per year is 47,500 (opt for monthly interest) He can invest in TWO SIP’s of 2,000 in a large cap fund ( BSL Front Line / Franklin Blue Chip & there are many more) & adjusting for a small amount another SIP of 2,000 in a Mid & Small cap fund, if he can take a higher risk as this sector is going to grow in the near future OR if he risk averse go for L & T Prudence Fund OR ICICI Dynamic Fund OR DSP BR Micro Cap Fund

monthly interval fund may be suitable (debt fund)

This is to inform you usually five year FD gets lesser interest than three year FD.Usually FD between 2 to 3 years gets more interest.This is true for Banks.Corporate deposit can be different.But if your client is looking for little higher interest.He can go for FD in HDFC Ltd and from the monthly interest or quarterly interest he can open an RD account there.I advice to take quarterly interest and put it into quarterly RD. Mutual Fund particularly Equity MF is having market risk.Even Debt MF is not risk free.Only Liquid and ultra short term fund is safe for your investor. FMPs are also good but it is better if such FMP invests in high rated papers.

kiran wants to invest in fd for 5 yrs with monthly interest,from which he can start an rd.i think he can invest in a good balanced fund,like icici balanced fund,with swp which can be rs. 800 per 1 lac invested & start an rd in BSL recurring deposit plan

Dear Sir /Madam The information provided from your side is insufficient, before giving any advice one must do throughly understand what is risk profile of your investor, what is in the mind of investor regarding the investment if you need any help on this feel free to contact me on my e mail sicjalgaon@hotmail.com thanks & regards vijay j Sharma IFA

Mam, This is a classic post-office scheme investor of MIS and RD. May be he is joking with you or maybe he doesn''t know the shots of mutual fund. What did you find? In any case he is looking for a return of <11% with much security over longer periods like 5+ years. A lump sum in liquid or ultra-short term with a monthly or weekly STP from it to any good diversified large cap fund will do the trick provided he didn''t pay heed to daily volatility of the SENSEX. Make him understand before closing the sale.