I am retiring on 31 March, 2017. I wish to invest appropriately ₹50 lakh for monthly returns and in some tax saving investments. I will be getting a pension of ₹70,000 or so. Being a central government employee I am medically covered post retirement. May I request you for a recommended portfolio. To start with, I can immediately start investing ₹15,000 per month.
- G S Virk
You have a pension of ₹70,000. How much extra income do you need to meet your monthly expenses? Do some calculations and find out how much money you need to invest. You can consider investing in tax-free bonds from public sector entities, Senior Citizens Savings Scheme (SCSS), Post Office Monthly Scheme, etc to secure a regular income. Tax-free bonds are a great option because income from them is tax-free, whereas the returns from other two options are taxable. You can also consider investing some money in arbitrage funds. These funds are treated like equity funds for taxation and returns from them will not be taxed if you hold the investment for more than 12 months.
We are a bit confused about your regular investment plan. We will not be able to suggest an investment option to you because you haven't shared your investment objective, investment horizon, risk profile, etc. Do write again if you have any clarification.
This article was originally published on December 18, 2015.
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