Prakhar Srivastava, Kanpur: I will be retiring in two years from now and a corpus will be receiving as a retirement benefits. Where I should invest the corpus percentage wise to earn regular monthly with safe returns. Request to answer the question.
The allocation of corpus percentage-wise will majorly depend on the monthly withdrawal required by the individual. In an ideal scenario, we would recommend investing 60% in Liquid funds and 40% in Equity - Largecap Funds. The rationale being that investment in Debt fund will provide around 7 percent rate of return p.a. and will provide funds for systematic withdrawal. Investment in Large-cap funds will provide an opportunity to invest in Indian equities and good quality companies which will provide returns in the range of 11-13% over the duration wherein systematic withdrawal will be taken care by Debt funds and create additional funds over the longer term which can be used for Systematic withdrawal.