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

SBI Magnum Tax Gain Scheme 1993 Applcation Form

    https://sites.google.com/site/mutualfundapplications/tax-saving-mutual-funds-elss     Investment Details Basics Min Investment (Rs) 500 Subsequent Investment (Rs) 500 Min Withdrawal (Rs) -- Min Balance -- Pricing Method Forward Purchase Cut-off Time (hrs) 15 Redemption Cut-off Time (hrs) 15 Redemption Time (days) -- Lock-in 1095 days Cheque Writing -- Systematic Investment Plan SIP Yes Initial Investment (Rs) -- Additional Investment (Rs) 500 No of Cheques 12 Note Monthly investment of Rs 1000 for 6 months and quarterly investment of Rs 1500 for 4 quarters.
Read more

Birla Sun Life Tax Plan Online

Invest Birla Sun Life Tax Plan Online   An Open-ended Equity Linked Savings Scheme (ELSS) with the objective to achieve long-term growth of capital along with income tax relief for investment.   After a bad patch from 2008 to 2010, Birla Sun Life Tax Plan has made a big comeback in the last five years, with a particularly good run since 2014. The fund's rankings, which had slipped to two stars in 2011-12, recovered sharply to three-four stars in the last three years. The fund has delivered a particularly large outperformance over its benchmark and peers in the last couple of years. The fund's investment strategy focuses on a diversified and high-quality portfolio, with parameters such as capital ratios and balance-sheet strength used to judge quality. It uses a combination of top-down and bottom-up approaches to take sector/stock positions. The fund avoids highly leveraged plays. Staying more or less fully invested at all times, the fund parks roughly half of its portfoli
Read more

Should you Roll Over 1 year Fixed Maturity Plans?

The period between January and March typically sees an uptick in the launch of fixed maturity plans, or FMPs. Not this year. Instead, fund houses are busy rolling over or extending the tenure of their one- year FMPs launched last year to three years. Investors in one- year FMPs have a choice. Either redeem units or roll over to three years. If you exit now, your gains will be added to your income and taxed in line with your individual slab rate of 10, 20 or 30 per cent. If you stay invested for two more years, you pay 20 per cent tax with indexation benefit. Yields have softened in the past few months on expectations of a rate cut. If the central bank continues its soft monetary stance, yields are likely to fall further. In such a scenario, it makes sense for investors, particularly those in the 30 per cent tax bracket, to roll over their investments and lock in at a higher yield now. In a surprise move, the Reserve Bank of India cut repo rate by 25 basis
Read more

Mutual Fund Review: IDFC Premier Equity Fund

  IDFC Premier Equity Fund, which falls under the presumed high risk group of mid- and small-cap schemes, can rely on astute and timely equity picks. These make it less vulnerable to fluctuations compared with others in the category   IDFC Premier Equity Fund is designed to invest in upcoming, but promising businesses available at cheap valuations, and hold on to these businesses until they reap desired returns. The experiment has been successful so far, and IDFC Premier Equity has emerged as one of the top performing mutual fund schemes in the mid- and smallcap category of equity schemes.    While the scheme is an open-ended equity fund, i.e. open for subscriptions throughout the year, it has a unique philosophy to limit fresh inflows. Thus, while an investor can always take the systematic investment plan ( SIP ) route to invest in the scheme throughout the year, inflows through a lumpsum investment have been restricted. Since inception, IDFC Premier Equity has been opened for l
Read more

IDFC Premier Equity Fund dividend

  IDFC Mutual Fund   has announced dividend under the dividend option of   IDFC Premier Equity Fund Direct-D . The quantum of dividend shall be   R 4.3464 per unit.   The record date has been fixed as May 06, 2015. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot]
Read more
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