My mother has recently retired from the government job and has received about Rs 40 lakh. Where should she invest it?
It depends on what kind of additional income is she aspiring for. Being retired from a government job, I assume that she will be getting some pension.
Suppose her pension is enough for her income requirement, and she doesn't need any additional income from this corpus. She should conservatively invest around 50 per cent of this money in equity and the rest in fixed income so that the money can grow.
If there is a need for income, it requires a different approach. A part of the money should get into a government-backed guaranteed vehicle, which will provide a steady income without any uncertainty. So it completely depends on the income requirement.