I am a government service holder going to retire next year. Can you please suggest how best can I utilize money I am going to get after retirement. Does investing in mutual fund good option.

Ans: What is the amount and what's your goal

Ans: Planning for your retirement and seeking ways to invest your lump sum amount of 50 lakhs wisely is a prudent step. Here are some suggestions for investing in various schemes to generate a good return through SWP (Systematic Withdrawal Plan):

Debt Mutual Funds:
Consider investing a portion of your amount in debt mutual funds. Opt for funds with a track record of stable returns and low volatility. Debt funds can provide regular income through SWP while preserving capital.
Balanced Mutual Funds:
Balanced funds, also known as hybrid funds, invest in a mix of equity and debt instruments. They offer the potential for growth through equities while providing stability through debt allocations. Choose funds with a suitable equity-debt ratio based on your risk tolerance.
Fixed Deposits (FDs) and Recurring Deposits (RDs):
Allocate a portion of your amount to fixed deposits or recurring deposits for a guaranteed return. While FDs offer a fixed interest rate, RDs allow you to invest a fixed amount regularly and earn interest. These can provide steady income through SWP.
Senior Citizen Saving Scheme (SCSS):
As a retired individual, you may consider investing in SCSS, which is specifically designed for senior citizens. It offers a higher interest rate than regular savings accounts and provides regular income through quarterly interest payouts.
Post Office Monthly Income Scheme (POMIS):
POMIS is another option for generating regular income. It offers a fixed interest rate and provides monthly income through interest payouts.
Annuity Plans:
Annuity plans offered by insurance companies can provide guaranteed income for a specified period or for life. Consider exploring different annuity options to choose one that suits your needs.
Before making any investment decisions, assess your risk tolerance, investment goals, and income requirements. Diversify your investments across different schemes to manage risk effectively. Consult with a financial advisor to create a customized investment plan tailored to your retirement needs and objectives.

Ans: As you wish to re-invest some amount received from your NPS. This is a responsible decision that can ensure a comfortable post-retirement life. We suggest you to invest the amount in different asset class such as mutual funds, bonds, FD etc in different allocation. It will help you to maintain the liquidity and stability at your portfolio in different market scenario and help you to grow your amount over the years.

You can also consult with a financial advisor for the personalized holistic financial planning as they will analyze your current financials, risk appetite, other assets & your goals and give you a clear idea about the investment.

Ans: Getting even 40,000 per month just two months later onwards implies receing an assured about 9.6% yearly return on your investments. I do not know of any such instrument which can generate this much for you on an assured continuous basis from just 2 months later onwards.