Subbu's Solution

I am a 66 year old retiree, not deriving any monthly pension. My monthly expenses are met by the interest earned on the fixed deposits in banks. I have around Rs 70 lakh in fixed deposits. Given the falling interest rates, it may be difficult in future to meet my monthly expenses. Where should I invest this money to help me maintain my living standard?
Like you rightly guessed, although the interest earned on your Fixed Deposits pays off your expenses now, it may fall short for your future expenses due to inflation. So your retirement kitty needs some exposure to investments that can keep pace with inflation, and these are mainly equities and gold.

Since we are not aware of your risk appetite, based on the information you have shared and that your assets are in Fixed Deposits, we think you may be a risk averse. With this background, we think you could look at investing some portion of your corpus in a multi asset fund which will offer you a combined portfolio of equity, debt and gold. Also returns from multi asset could be better than FD over the long run. Nevertheless one must understand that in mutual fund investment, the principal amount is not risk free as in case of Fixed Deposit, also returns in mutual funds are volatile and not fixed as in case of Fixed deposit.

It is highly recommended to consult a good financial advisor, who will help you structure the ideal portfolio taking tax also into consideration.


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.

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Please visit - 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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