Should I invest my 4 lakhs in mutual funds for better returns?

Ans: You may consider the below funds:

a)   UTI Flexi Cap – Growth

b)  Parag Parikh Flexi- Cap Growth

c)   Axis ESG Equity Fund – Growth

d)  DSP Mid Cap Fund – Growth

Ans: You may consider a basket of hybrid funds considering your age and tenure.

• Edelweiss balanced advantage fund - growth option
• Canara robeco equity hybrid fund regular growth
• Motilal oswal equity hybrid fund-regular plan growth
• Union balanced advantage fund regular plan - growth
• Tata balanced advantage fund regular plan growth

Ans: I would first suggest you to keep atleast 2-3 years of annual expenses in bank deposits or liquid funds to meet your day to day expenses. After that whatever excess fund is left , if it is not attributed to any goals, then you may invest them in any Index funds, or large cap funds. Please note that there will be little volatility in these funds but they are good for safety and decent returns. So if you need them in 3-4 years time, please avoid investing them in equity.

Ans: Hello Value Investor. You can consider balanced advantage, multi asset and large cap category for your investment.

Ans: At 78, ensuring your investments provide a stable income is crucial. While FDs offer safety, they might not always provide the returns you desire, especially considering inflation and the need for higher returns to match your budgetary needs.

Considering your age and need for higher returns, you might want to consider Debt Mutual Funds or Balanced Advantage Funds. Debt Mutual Funds predominantly invest in fixed-income securities and can offer better returns than FDs with a moderate risk profile. On the other hand, Balanced Advantage Funds dynamically manage equity-debt mix based on market conditions, aiming for consistent returns.

However, Mutual Funds, even debt funds, come with some risk. They are subject to market fluctuations, and while they aim to provide better returns than FDs, they might not always guarantee fixed returns.

Given your situation, consulting with a Certified Financial Planner would be highly beneficial. They can assess your risk tolerance, financial needs, and recommend a suitable investment strategy tailored to your requirements.

Remember, while aiming for higher returns, it's also essential to maintain a balance between risk and returns, ensuring your investments align with your financial goals and peace of mind in retirement.