I will be 60-years-old in March, 2018. I am employed in a company where I can continue till 2022 or a little more. From Sept 2017, I can do a saving of Rs. 50,000/- per month till Mar 2022. Could you kindly advise me how to mindfully invest this amount for the next four-five years. Also till March 2022, I will be getting lumpsum amounts of gratuity, LIC maturity etc of about Rs 10 Lakhs. Where should I invest this amount? Awaiting your kind advice.
For an investment plan to be effective, it has to be customised to your financial goals and current savings profile. Your most important goal has to be building your retirement corpus which is now less than five years away and is now a short term goal. If your retirement savings currently comprise only of your gratuity and LIC maturity, then it would be advisable that you invest the monthly surpluses in conservative fixed income instruments like Fixed deposits, PPF and/or debt mutual funds. However, if you also have other savings towards retirement kitty, than you could consider investing in asset allocation mutual funds which will give an exposure to equity in a controlled fashion.
I have to make an investment of Rs 2.5 lakh and I was looking at options to invest in mutual funds. Is this the right time to buy mutual funds with markets at high? I am looking at a medium to long term investment period three-five plus years and would like to have a diversified portfolio. Can you suggest some mutual funds which have been performing well over the years with medium to long term outlook.
— Ridd Pawar
An investment horizon of three-five years should be classified as a medium term outlook. Long-term horizon should ideally be 10 years or more. Given your medium term horizon, your focus has to be on risk-adjusted wealth creation and preservation which is what a good investment plan based on mutual funds can give you. Market valuations are an important parameter to evaluate in such a…