Is my fund selection good considering that I am retired

Being retired, you have rightly invested in SCSS and POSB upto the maximum limit.

With regards to your mutual fund investments even though the funds selected are good we are unable to understand your investment objective and investment horizon.

You have selected debt funds with growth option. Have you invested them in lieu of fixed deposits? If it is so then it is a good decision.

You have also invested in ultra short term funds and liquid funds. Is this with a view to have a corpus for meeting emergency expenses? If so, then this decision is also fine.

You have also invested in MIPs mostly in growth option and some of the balanced fund schemes are also in growth option. However, some of the balanced fund are invested in monthly dividend and / or quarterly dividend options.

You have also invested in two equity funds.

Please note that mutual fund investments should be made on the basis of your investment requirements and risk taking ability.

Since you are not drawing any pension and we also assume that interest received from SCSS and POSB would not be sufficient for meeting your monthly expenses, it would be prudent if you could invest more in mutual fund MIPs and balanced funds, of course if your risk profile permits so.

Therefore, your ideal mutual fund allocation should be as follows -

1. Decide how much money you need for meeting your monthly expenses (other than interest from SCSS and POSB). Invest in MIPs and balanced funds, either in dividend pay option or SWP option, to the tune that you will get you the desired monthly/ quarterly earnings.

2. Keep some money invested in liquid funds in order to meet emergency expenses.

3. Invest rest of the amount in debt funds - long term and short term - in order to get better than fixed deposit returns.

Hope the above broad guidelines helps you. In case of any further query do write to us and we will be glad to answer your query.

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