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Not too Late to Start

Start investing in a balanced fund and move to a debt fund as your approach retirement

I am 51 years old and plan to retire after couple of years. I have lump sum of Rs 5 lakh in FD and I can invest Rs 15,000 a month for the use in retirement. Please let know what are the best funds that I can invest in?
Dinesh Mewada

For a 51-year old you are a bit late in the day to invest, especially if you have not had any equity exposure this far. You do not get the advantage that long-term investing and the power of equity that investing over long periods get. However, you can still consider investing in mutual funds, especially with about ten more years to go for your retirement.

You can still consider investing in a balanced to get the upside of equity over the next 5-7 years and then move your investments to a debt fund or instruments that will offer you fixed returns as you wish to utilise it in retirement. Your bank fixed deposit currently runs the risk of not even matching inflation and is tax inefficient as you pay tax on the returns you earn from this type of savings. Moreover, if these investments are all that you think will fund your retirement income; you run the risk of outliving your savings. It may be a good idea to increase your planned investment of Rs 15,000 a month to Rs 25,000 to Rs 30,000 over the next 5-7 years, which may still work towards building a corpus that you can utilise in retirement.



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