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I will retire in 12 years. Where and how should I invest?

Dhirendra Kumar gives a simple yet comprehensive investment plan for him

My age is about 53 and I can work until the age of 65. I have about Rs 50 lakh in FDs and this is my pension corpus. I do SIPs of Rs 40,000-50,000 per month. How should I invest my money?
- Baljeet, Delhi

Edited transcript: You should have fixed income only to the extent of your emergency requirement. Among your fixed income options, fixed deposit interest is completely taxable and TDS is deducted from it. Your fixed income allocation should instead be in a fixed income fund. This will be more tax-efficient.

With about 12 years of work left, you still have quite some time to retire. This means long-term. Work on a simple plan - put a liberal estimate of your emergency money in a fixed income fund. The rest you can put into equity or balanced funds. Do it in a staggered manner, over say the next 1.5 to 2 years. Returns on both fixed income and equity will be lower in the coming years but equity returns will beat fixed income and inflation.

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