I am M Tech From IIT Madras and closing down my own Software Development Firm.
I have about 1.2 CR (cash) fund after squaring of all my closure dues. Other than this my house and Office space which is loan free. Since I am living in a very frugal city my requirements is about 50K a month. Similarly to keep me busy i think that small portion @ 10 % be in swing and F & O trading and rest be in very low risk to low risk instruments which will pay dividends as well as value growth compared to inflation
It seems like you’re seeking a miracle. To the best of my knowledge, there isn’t an instrument that offers both very low risk and significant growth potential. The closest option would be government securities, although they don’t appreciate in value. Personally, I would allocate 1 crore to government securities and invest 20 lakhs in low-risk option strategies.
DISCLAIMER: I AM NOT A REGISTERED FINANCIAL ADVISOR.
long in nifty bees and short future, both position will protect each other, you can collect about 150 points Fut premium per month this way. if you can do 10 lots that will be 75k/month.
make sure quantity of bees is equal to nifty lot, as always test it in paper trade first.
Age 63
No Family Dependents, Living with Son & DIL both earning more than enogh for monthly expenses. I would like to keep up my self esteem and contribute to family financial responsibilities so 50K /m is more than enough for me. The fund should be a bit safe and to be easily liquidated to take care of any emergencies.
Well I know that any share market intrument has risk involved compared to Bank FDs but within those it is expected that any suggestions be in lower half for risk and growth potentials in upper half. Interest rates 7/8 % even with compounding reduce value due to inflation, expecting about 15-20% (Correct me if I am Wrong).
Just a warning - Trading isn’t easy. 98% of people do not beat FD over 3 years as per Zerodha head himself.
And 90% of people i think lose money.
So do not expect to start making money from the start which is when most of the damage can happen to new guys. Allocating retirement funds immediately would be foolish.
Try to research stuff before going live. If you find something you think will make money, test it on market data - say last 10 years. And understand how it works, if it works. Trading has cyclical good and bad periods and one has to survive both and not be overly affected and make mistakes.
Then, start live but slowly. No need to hurry, start small, make some money, add to capital. Rinse and repeat.
I would highly suggest you stay away from F&O at this age, especially this close to retirement. You will definitely make losses, and since you are retiring, you can’t even work to earn it back. Invest some amount in MFs and maybe some basket of stocks, but don’t touch derivatives. It’s 100% out of your risk profile.
It’s your retirement money, not spare change. Don’t play with it.
Keep 2 years of expenses in savings account. Keep 1-2 years more in some liquid fund or FD. You are senior citizen. You can easily get 9.5% in FD at small finance banks. invest upto 5L with them in an FD and it is safe (insured by RBI). You can open in multiple small finance banks, not just 1. Different banks are insured separately.
Left over money you can put in dynamic asset allocation mutual funds and maybe a little bit in LargeMidCap funds. Maybe put 50k or 1L in stocks (don’t put in small companies. Set your criteria as company must be in top 150 companies. Don’t fall to telegram, whatsapp and youtube tip videos) and resist the temptation to increase it.
Once again telling that it is your retirement money, don’t gamble it away in F&O. You will 100% lose money.
I think you should be able to get quarterly interest payout and generate your expected 50k per month
If you want to do something other than FD since its only insured upto 5L by RBI, you can split your 1cr across the govt bonds in such a way you receive the interest payouts spread across the financial year
20L you can have it as emergency fund, let it earn 3% savings bank interest
Avoid F&O as much as possible specially it’s your retirement money…Divide your corpus in Govt FD, bonds and trade in ETFs (gold and nifty) …You can also invest in debt fund to have some liquidity available …
