I am due for retirement in two years. I am planning to invest in Post Office fixed deposits. I also want to invest some amount in MFs. What kind of funds should I invest in for regular income?
Rajesh Jha, Patna
It is heartening to see that you are considering investing in mutual funds in your retirement, even though you come across as a first time investor. Before starting the investment, figure the amount of risk that you can take with the investments. Also, ask yourself if you need money to come to you from these investments every month like an income stream or if it is for growth. Based on these factors, you could go for a conservative growth fund like Aditya Birla Sun Life Frontline Equity or HDFC Balanced. If you need a fixed sum every month from these investments, you should instruct a systematic transfer option from these funds for money to land into your bank account at the desired frequency. If not, stay invested for the long run in these funds for building wealth.