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I'm a government employee and retiring soon. I plan to allocate 35 per cent of my retirement benefits for my daughter's wedding which may take place in the next 2-3 years. Where should I invest this money? And what should I do with the remaining funds? - Anonymous
Since your daughter's wedding is just 2-3 years away, it is a short-term goal. We suggest investing in short-duration debt funds. These funds invest in both corporate and government bonds and provide moderate yet stable returns.
When deciding which short-duration debt funds to invest in, try to avoid the top performers, as they often take on hidden risks. Instead, look for conservative funds that have a higher allocation to AAA-rated corporate bonds and government securities. Further, divide your investments across 2-3 funds to spread your risks.
As for the remainder of your retirement corpus, consider investing in one or two flexi-cap funds. Flexi-cap funds are diversified equity funds that invest across companies of all sizes and sectors. Assuming you are well-versed in the equity markets and will receive a monthly pension that covers your expenses. That's because your pension provides the safety net needed for you to maximise your return potential by investing in equities.
Also watch: Where to invest for short-term goals?
This article was originally published on September 10, 2024.
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