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As a retiree, what funds should I choose?

Dhirendra Kumar names a couple of funds and says how should one invest in such a situation

As a retired person, with the interest rates falling now, can you suggest some funds which will help me derive 9-10% as dividend per annum? I already have HDFC Prudence Fund.
- Madan, Delhi

Transcript: To enhance your returns you will have to invest in equities. However, there are some factors that you need to keep in mind. In the last couple of years, the equity has performed well which is why the balanced fund returns have been good. This might not always be the case, as equity is volatile. And, if the market doesn't perform well, then the value of your asset will go down.

For your regular income, post-retirement, you should depend on fixed income avenues like SCSS or fixed income funds. This should be in such a way that your 1 to 3 years income should be derived from these options. The money that you require in future will have to perform 1.5 to 2% more than inflation. So, such a corpus should be kept in conservative equity funds like the one you hold. Apart from Prudence Fund, you can choose a more conservative fund like the ICICI Pru Balanced Advantage Fund or Franklin India Balanced Fund.

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