Can you advise me on switching from FD to mutual funds

Since you do not have regular income and need to support your family (including your child’s education), you should not switch from your existing FDs to mutual funds. Though mutual funds can give higher returns than FD, but they are subject to market risks. To supplement income from FD interest, you can switch your existing mutual fund investments to two or three balanced funds with monthly dividend options. L&T India Prudence Fund, ICICI Prudential Balanced Fund, ICICI Prudential Balanced Advantage Fund, HDFC Prudence Fund are some of the good performing balanced funds paying monthly dividends. Annual dividend yield of these funds have been around 7-9% and these funds have also given some capital appreciation to investors. Capital appreciation of your investment along with monthly income, will provide you some cushion if your search for a suitable employment takes longer than anticipated.

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