Where to invest my money as I am retired

We have replied to a similar query which you might like to read https://www.advisorkhoj.com/post-your-queries... As the interest rates have come down significantly on investments like post office MIS, bank fixed deposits etc. mutual funds have emerged as an alternate choice for retirees.

While you might get better post tax returns from mutual funds, there is some amount of risk involved in it. However, as a retiree if you can remain invested in mutual funds for 5 years or more then the risk minimizes to a great extent. You can also choose a fund based on your risk appetite. There are mainly two category of funds which can help you get a regular return from mutual funds, either through regular dividend payouts or through SWP - These two categories are, hybrid debt funds (MIPs) or balanced funds.

What is SWP - You can learn more on the topic here https://www.advisorkhoj.com/articles/Mutual-Funds...

You can also visit this section on our website where you can see the regular monthly dividend payout track record of these two category of funds - https://www.advisorkhoj.com/mutual-funds... Please note that dividends paid by mutual funds are tax free in your hand.

To know more about how can you benefit from SWP from balanced funds, do read this https://www.advisorkhoj.com/articles/Mutual-Funds...

In conclusion, if you are ready to take a bit of risk, our suggestion would be to invest in either MIPs or balanced funds for minimum 5 years and draw a fixed amount every month through SWP. Your initial withdrawal amount should not be more than 8-9% annually - For example, if you are investing Rs 10 Lakhs, you may draw Rs 7,500 per month (that comes to 9% annual). Also, if you remain invested for the long term, you can also expect good capital appreciation from your investments in mutual fund MIPs and balanced Fund.

Please try this SWP calculator to see how it works in mutual funds and how some of the funds performed basis the above assumptions https://www.advisorkhoj.com/mutual-funds...

Hope you find the above useful. Thanks for writing to Advisorkhoj.