If you are on the verge of retirement or have retired recently and are uncertain about where to invest your retirement funds accumulated by you over the years, this might be of some help for you to make the right choice.
The age-old wisdom tells you that you need to avoid risky investments so as to prevent erosion of your retirement kitty. The best thing to do with your retirement corpus is to invest it in mixed asset classes that would create a balanced portfolio of investments which will ensure safety of capital as well as provide moderate returns at low/moderate risk. In other words, the allocation of your funds should be such that the reward is higher than the level of risk exposure.
Some of the investment avenues that provide safety of capital along with steady returns are bank and postal fixed deposits, senior citizen saving scheme, debt mutual funds, post office monthly income scheme, etc. One can invest about 70-75% of the retirement corpus in these investment schemes which provide fixed rate of monthly returns and help take care of household expenses. About 15-20% of the corpus can be invested in balanced mutual fund schemes and monthly income plans of mutual funds. These investments would help beat inflation and help arrest erosion in the value of the retirement corpus. The remaining 5-10% of the corpus can be invested in equity and equity-oriented mutual funds, where the returns would be high commensurate with the risk associated with equity investments.