Skip to main content

I am retired and I have surplus money - Where to Invest?

Download Tax Saving Mutual Fund Application Forms

Invest In Tax Saving Mutual Funds Online

Buy Gold Mutual Funds

Leave a missed Call on

94 8300 8300

 

So you are a Senior Citizen with some extra money? Wow, that’s impressive, now days. You can go for a dream vacation, gift money to your grandchildren, buy a senior citizen friendly gadget or just call for a big party. But then, as usual, we like to take a structured approach. Let’s give you few tips on how you can utilize this surplus:

Do you have enough liquidity? Do you get adequate cash flow from your retirement corpus or does it vary? Based on how you get the returns from your retirement portfolio, you may need a corpus for 3 to 12 months of your monthly expenditure. So, accordingly, first utilize the extra funds for this purpose. You can invest in FDs with Senior Citizen Rates or go for Liquid MFs.

Do you have an adequate Health Cover? Based on your health situation and existing health cover, you may need to invest in additional health cover. It depends on your specific situation but generally we recommend a family floater of at least Rs. 15 Lakhs for a Retired Couple. It may be a good idea to spend on preventive health care.

What about your Financial Goals? You may not have a significant financial liability or a financial goal remaining now. But think through your wish list. Ask your spouse. Do you need to save for a dream vacation? Are you expecting a grandchild and would you need to spend money there? Would you like to contribute seed funding and let your children take the loan to buy the house? So review your financial goals, liabilities and aspirations and see what is feasible.

Would you like to make an estate plan? If yes, then invest the surplus funds in long term asset class for growth opportunities. It may be a good idea to hire an estate planning professional and make a plan.

Invest in yourself. You may like to work part time and create a regular income, additionally. So see if you can take up any courses that will help you to market yourself better. Learn a new skill, go take up a leadership course or attend a decent training.

Consider a social cause. Consider repaying to society or community givebacks in your religious or professional area. See if you can join hands with an NGO working on your preferred social cause and if you like what they do, you may like to donate some funds to them. 

First, assess your Risk Appetite: First, use a psychometric test on internet or ask your Financial Planner for conducting a Risk Assessment exercise. This will give an idea of your risk tolerance. Based on this, you could take a position in growth oriented assets like Equity MFs which generate decent returns in the long term but can be volatile in the short term.

You must Leverage Equity: It’s hard for anyone to stay away from Equity, we believe. This is likely to generate best performance on a real returns basis, in the long run. So to beat inflation, you must take some exposure to Equity through MFs, based on your risk appetite. Consider investing in Large Cap funds that invest predominantly in Bluechip stocks. If you like to tone down the aggression, then look at Hybrid MFs with Aggressive Equity component. If not, then we recommend you to at least look at Hybrid MFs with Aggressive Debt component. These will have a minor component of Equity that is likely to provide a higher ROI, overall. In retirement stage, after initial 10-15 years, the corpus starts to drop as inflation catches up. If you use these 10-15 years to invest in Diversified Large Cap Equity MFs, then you may be able to build a significant corpus that will help you in later years.

Fixed Income Avenues: Well, you could consider Senior Citizen Savings Scheme, Post Office MIS, Fixed Deposits, Tax Free Bonds or Debt MFs giving regular income. For Fixed Deposit, consider splitting the corpus equally between Nationalized Bank FDs and Corporate FDs with high rating. For Post Office savings, keep in mind the physical visit and other logistics. Prefer online facilities so that you could manage it even remotely. If you like to invest regularly, then see if you like the ‘Step Ladder” approach. Here, you can invest say Rs. 5,000 PM in a 1 Year FD. From 13th month, your investment will double as the earlier FD would have also matured. This way, you can build a sizable corpus over a period of time. Based on your overall income, keep the tax implications in mind while you make the investment. 

For further information contact Prajna Capitalon 94 8300 8300 by leaving a missed call

Leave a missed Call on 94 8300 8300

Leave your comment with mail ID and we will answer them

OR

You can write back to us at

PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

---------------------------------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Franklin India Bluechip
      4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
      4. Birla Sun Life Front Line Equity Fund
      5. Franklin India Prima

C. Mid and SmallCap Funds Invest Online

      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
      5. Birla Sun Life Dividend Yield Plus
      6. SBI Emerging Businesses Fund
      7. HDFC Mid-Cap Opportunities Fund
      8. ICICI Prudential Discovery Fund

D. Small and MicroCap FundsInvest Online

      1. DSP BlackRock MicroCap Fund

2.Franklin India Smaller Companies

E. Sector Funds Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
      3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

      1. DSP BlackRock Tax Saver Fund
      2. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund
      4. Birla Sun Life Gold

H. International funds Invest Online

1. Birla Sun Life International Equity Plan A

2. DSP BlackRock US Flexible Equity

3. FT India Feeder Franklin US Opportunities

4. ICICI Prudential US Bluechip Equity

5. Motilal Oswal MOSt Shares NASDAQ-100 ETF

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...

ICICI Prudential Value Fund Series I

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   Performance of the scheme will be benchmarked to the S&P BSE 500 index ICICI Prudential Value Fund is a closeended equity scheme. The scheme will have tenure of three years (1095 days) from the date of allotment of units. Units of the scheme will be fully redeemed at the end of the maturity period, unless rolled over. NFO PERIOD:   The NFO is open from October 18 to 28. The minimum subscription during the NFO period is Rs 5,000. SCHEME OBJECTIVE:   The scheme aims to provide long-term capital growth by investing in a well-diversified portfolio of equity and equity-related securities. INVESTMENT STRATEGY:     The fund proposes to invest in stocks that are trading at a huge discount in the BSE 500 index and plans to book profit and distribute dividen...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now