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Given the present situation, where should a retiree park Rs 10 lakh?

If this is your long-term money, consider doing an STP in an aggressive hybrid fund, says Dhirendra Kumar

If this is your long-term money, consider doing an STP in an aggressive hybrid fund, says Dhirendra Kumar

I'm a 79-year-old government pensioner. In the present situation, where can I park Rs 10 lakh safely?
- Chandra

Being a 79-year old and having Rs 10 lakhs are not complete information for me to answer this question. I would like to have more information. Nevertheless, for a 79-year-old person, there are two-three scenarios that come to my mind. If this money is going to be an emergency fund, then let it be only in ultra-short-term or liquid funds. If this is a long-term investment, say you want to leave a bigger estate for your children, then I would urge you to invest this money confidently in aggressive hybrid funds. There are ways of doing it. To reduce your risk, park this money in a liquid fund first and then, spread this investment over the next 18 months or so. This is known as a systematic transfer plan (STP) from a liquid to an aggressive hybrid fund. But do this only if it is your long-term money.

This article was originally published on April 16, 2020.

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