My age is 46. I will retire in some time and I have a corpus of about Rs 50 lakhs. I want to invest this money in ultra-short term funds and do an STP from them into a balanced fund in 10-12 instalments. Is this the right course of action?
- Girija, Madhya Pradesh
Transcript: No, the market may not correct when you get this money. This money is quite important for you and your psychology will change after you retire.
Look at what your monthly expenditure is and whether you are getting any money from a fixed source such as a pension or rent. If needed, place some money in fixed income such as Post Office Monthly Income Plan or Senior Citizen's Savings Scheme and invest the rest in a balanced fund. Be ready to do an STP over 3 years rather than 1 year.