Sir, I just retired from my service @60yrs. I will get my PF+other fund ₹50L. Please advice how to invest the amount so that my principal not disputed and I can get ₹30,000 pm for my monthly expenses. My family of 2 persons are covered ₹50L health insurance. Regards

Ans: Invest Rs. 20 lakhs each in below 4 funds and do a SWP of not more than 7.5% of the corpus i.e. upto Rs. 50000 per month i.e Rs. 12500 from each of the 4 funds

1. HDFC banking and PSU Fund – Growth
2. ICICI Pru Corporate bond Fund – Growth
3. Edelweiss Balanced Advantage Fund – Growth
4. Union Balanced Advantage Fund – Growth

Ans: How much amount you need on monthly basis to survive ?

Ans: The best is to split your investments into the below 2,

Senior Citizen Savings Scheme
PMVVY

Ans: You have retired and want to withdraw your Provident Fund (PF) amount. Let's explore investment options that can provide handsome returns to meet your post-retirement needs.

Mutual Funds
Actively Managed Mutual Funds
Actively managed mutual funds are a good option. Professional managers make strategic investment decisions. They aim to outperform the market. This can lead to higher returns compared to passive funds.

Balanced Funds
Balanced funds invest in both equity and debt. They offer a mix of stability and growth. This helps in balancing risk and return. They are suitable for retirees seeking steady income with potential growth.

Monthly Income Plans
Monthly income plans provide regular income. They invest in debt and a small portion in equity. This mix ensures steady returns and some growth. This is ideal for ensuring a consistent income stream.

Bank Deposits
Fixed Deposits
Fixed deposits (FDs) offer guaranteed returns. They are safe and reliable. Banks provide different tenure options. Senior citizens often get higher interest rates on FDs. This enhances returns and ensures safety.

Recurring Deposits
Recurring deposits (RDs) allow monthly investments. They offer fixed returns and are safe. RDs are suitable for systematic savings. They ensure disciplined investment over time.

NBFC Deposits
Company Fixed Deposits
Company fixed deposits from Non-Banking Financial Companies (NBFCs) offer attractive interest rates. Ensure the NBFC is covered under DICGC for added safety. These deposits offer higher returns compared to bank FDs. Check the credit rating of the NBFC before investing.

Debenture Deposits
Some NBFCs offer debenture deposits. These provide higher returns but are slightly riskier. Ensure the debentures are from reputed NBFCs with high credit ratings. This can help achieve better returns with manageable risk.

Post Office Schemes
Senior Citizens Savings Scheme (SCSS)
SCSS is a government-backed scheme. It offers regular income and higher interest rates. The scheme has a tenure of five years, extendable by three years. It is a safe and reliable investment option for retirees.

Post Office Monthly Income Scheme (POMIS)
POMIS offers guaranteed monthly income. It is a safe investment with moderate returns. The scheme has a tenure of five years. This scheme ensures regular income, making it ideal for retirees.

Important Considerations
Diversification
Diversifying your investments is crucial. Spread your corpus across different investment options. This reduces risk and enhances returns. A mix of mutual funds, bank deposits, and NBFC deposits can provide a balanced portfolio.

Risk Assessment
Understand your risk tolerance. Choose investments that align with your risk appetite. Low-risk options like FDs and SCSS provide stability. Higher-risk options like mutual funds offer growth potential.

Liquidity
Ensure your investments offer enough liquidity. You may need funds for emergencies. Opt for investments that can be easily liquidated.

Professional Guidance
Consider seeking advice from a Certified Financial Planner. They can help create a customised investment plan. Their expertise ensures you make informed decisions.

Final Insights
Investing your PF corpus wisely is essential for a comfortable retirement. A balanced approach with a mix of safe and growth-oriented investments is ideal. Assess your needs, risk tolerance, and liquidity requirements. Diversify your investments to ensure stability and growth. Professional guidance can enhance your investment strategy.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in