i replied your pm. from there -
If you have money to spare for 5-10-20 years, invest in good Equity MF with long term record. Some good ones are Franklin Prima Plus, BSL Frontline Equity, HDFC Equity. Can also consider UTI Midcap.
Use SIP to invest - dont worry about news, sensex etc - just SIP every month for 5-10 years. This is the easiest way to invest. This has given 30 times return over last 20 years.
Good websites for Mutual Funds - Value research, Funds india, morningstar.in
2) For short term money that you will need in few years - put in Debt MF. Something like UTI dynamic bond, BSL dynamic bond should do ok. For month by month needs, you can use liquid/ultra short term funds - ex Franklin Ultra short term
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There are many good funds - just pick 3-5 and hold. Prefer to give them atleast few 3-5 years to perform before changing. A good list of funds is
here.
Invest in Direct Growth options of Funds. You can also maintain Debt-Equity allocation ratio based on your comfort ( ie say 50% in Equity and 50% in debt). This way to add more if/when markets fall and have less volatiity.