Posted on Monday, Apr 13, 2015
Great to see that you want to save your corpus and not spend it on expensive vacations or something similar! Here’s how you can invest this corpus:
Step 1 - Calculate your monthly expenses post retirement. See if the pension (Rs. 20,000) is enough or not. If it’s enough then your asset allocation will differ. If not, invest money accordingly so that he can fulfill his needs of monthly expenses. We presume that this 20,000 is after paying taxes.
Step 2 - Keep a portion of your money aside for contingencies in instruments like bank FDs. This could be one or two years of expenses.
Step 3 - Other than that at this stage of your life, assuming your age is around 58 years, you may invest 10-20% in equities, 10-15% in gold and rest in debt. Generally it is presumed that at this age the risk taking capacity of an investor is low. Therefore you should park your money in less risky asset class like debt and bank FDs also.
However, if you wish to grow your money and your risk appetite is high you can look at equities Remember asset allocation always plays an important role in the kind of returns your investments generate. Please consult your financial advisor before taking any investment related decisions.
Subbu's Solution is authored by I. V. Subramaniam. I. V. Subramaniam is a director of Quantum Asset Management Company Private Limited. The responses expressed here are strictly for information and explanation purpose only. The responses are meant for general reading purpose and not to be considered as an investment advice / recommendation. The responses are not intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or units of the Mutual Fund. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments. The Sponsor, The Investment Manager, The Trustee, their respective directors, employees, affiliates or representatives shall not be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the information contained in the responses.Risk Factors: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Please visit - www.QuantumMF.com to read Scheme Specific Risk Factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the scheme's objective will be achieved and the NAV of the scheme(s) may go up or down depending upon the factors and forces affecting securities markets. Investment in mutual fund units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the Sponsor / AMC/ Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited (AMC). The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.
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