Queries

Have A Mix Of MFs For Retirement Planning S. Pai, Vellore I am 58 and I retired this year with Rs 2 crore from my company. I do not have a pension. How should I invest this corpus to get regular monthly income for 20 years? Generally, senior citizens can invest in the following options for tax efficiency and regular income: Senior Citizens Savings Scheme, Pradhan Mantri Vaya Vandana Yojana and RBI Floating Rate Savings Bonds. But these are available only for citizens above 60 years. As you are younger, you could invest in a mix of tax-saving fixed deposits and the following categories in mutual funds—hybrid, balanced advantage and short-term debt funds. You could opt for a systematic withdrawal plan, which is more tax efficient and allows customising the withdrawal rate per month. For example, if you invest Rs 40 lakh in hybrid funds and opt for a withdrawal rate of 6 per cent per...