I am 79 yrs old and most of my investments are in FD,SCSS,LIC Jeevan Akshay VII and Gold Bond. I can spare about 50,000 to 70,000 which I plan to invest in MF with some risk.Pl suggest the right MF or should I invest in some other.
Ans: Risk is perceived differently by everyone. For short term in equity market risk is the Volatility, but if you increase the duration of your investment ( ideally 7 years plus ), the risk can be downsized or even mitigated as per the historical data. What people don't see is the *Inflation Risk* where the investment made is yielding lesser than inflation rate which in turn depreciates the money. Also Inflation rate mention by government records is the basic Inflation , whereas a middle class person consumes much more goods not mentioned in the inflation basket which inflate at a higher rate that the government mentioned Inflation Rate
Hence your investment portfolio should have a mix of debt and equity
For a person your age, if your time horizon is 7 years plus , you can have a 50/50 split between debt and equity MF