I am 56 years old and will retire in four years when I turn 60. I want to invest Rs25 lakh in mutual funds which will be used as pension money after retirement.
— Y N Amin
Your concern on capital protection, growth and income at the same time is complex, but achievable. If you are looking at investments that will supplement or act as pension in retirement, you need a portfolio at this stage which has 30 per cent equity exposure, if you can stomach some risk. We suggest a portfolio of balanced funds and monthly income plans (MIPs) to take care of income needs. Initiate equal systematic investment plans (SIPs) across all these four funds so that your Rs25 lakh can be invested over the next few years. When you retire, you can initiate a systematic withdrawal plan (SWP) to channelise more of the money into the MIPs.