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50 and Free: What's a Future-Proof Investment for a Skilled Craftsman?

Janak Patel |71 Answers |Ask -Follow

MF, PF Expert - Answered on Apr 09, 2025

Janak Patel is a certified financial planner accredited by the Financial Planning Standards Board, India.
He is the CEO and founder of InfiniumWealth, a firm that specialises in designing goal-specific financial plans tailored to help clients achieve their life goals.
Janak holds an MBA degree in finance from the Welingkar Institute of Management Development and Research, Mumbai, and has over 15 years of experience in the field of personal finance. ... more

Asked by Anonymous - Mar 15, 2025Hindi

I am 50 yrs free hand worker which kind of One time Investment good for my future life

Ans: Hi,

As you are free hand worker and also at age 50, it is important to consider safety, liquidity along with growth of your investment.

I would recommend you evaluate your requirements and proceed to invest as mentioned
1. Requirements up to 3 years - Money required for this duration should be completed protected and kept available as and when required. I would suggest you consider keeping such amount in a fixed income source e.g. Fixed Deposits. Even when you setup the FDs, setup FDs for 6 months, 1 year, 2 year etc. so that you can access the matured amounts of the FD and don't need to break them. Of course if required you can access when needed. But optimize the returns by not breaking the FDs but by letting them mature at the time of your requirement. Risk - Low. Expected Returns - just about equal to or below inflation.

2. Requirements beyond 3 years and up to 7 years - Such money can be kept in funds that can give you a little better returns than the FDs, as you have some more time for it. I suggest you can consider Conservative Hybrid/Balanced Advantage Mutual Fund Schemes for this as they can provide better returns over the period of time. These schemes will invest in Debt (fixed income) and Equity (Market linked) opportunities and have the potential to generate better returns than FDs. So pick Conservative Hybrid schemes if you require it under 5 years and Balanced Advantage schemes for over 5 years requirements. Risk - Moderate. Expected Returns - equal to or above inflation.

3. Requirement beyond 7 years - With time on your side you can look for a slightly higher returns and consider Equity Mutual Fund schemes for such money. A diversified portfolio of schemes (3-6 schemes) depending on the amount can be considered for achieving slightly higher returns to beat inflation and growing the corpus amount. Risk - High. Expected Returns - can provide double digit growth.

Please note , you have to decide your own risk taking ability along with the prospects of income in the future as you decide on any approach/option. The lesser the risk, the safer options you should consider.
Considering your age and income you will need to prepare an approach. Soon your retirement requirement may come into consideration.
I recommend you approach a certified adviser who can guide you through these aspects over time.

Thanks & Regards
Janak Patel
Certified Financial Planner.

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