How can senior citizens protect their retirement corpus from inflation?

Answer transcript: Assume you retire with 50 lakh. You need only 15 - 20,000 per month as income. This means you can 27 lakh rupees in a guaranteed return scheme, generating the income you need. The remaining 23 lakh rupees can be invested in a balanced fund. In 5 years time, when you need a higher income, your capital will have grown enough to provide it. However, you should not invest this corpus in the balanced fund in one go but rather over 18-36 months. Do not go for a mid to small cap fund or a sector fund. A balanced fund is tax efficient and can protect you with a high return. It will also be able to cope with inflation and that is the bare essential requirement. If you invest entirely in fixed income, the income will fall in real terms and you will not be able to do anything about it.

This article was originally published on January 29, 2018.