By reading this article, you may have just started a job, you may have been in the job for many years, or you may be retiring. So this article is just for you. So, we, the job seekers, have an intimate subject of PF and graduity! While you are working, a small amount of money is deposited in the PF account every month, in which you and your company have a small share. And this amount increases exponentially when you retire or retire from the job. In addition, if you have worked in the same company for more than five years, you will also get graduity from the company.
But this article is about how to use this amount properly in the future when the amount falls together after retirement.
When you invest in a mutual fund through SIP with a view to the future, and when you have finished your job and now you want to withdraw money from your savings, you can withdraw it slowly through SWP, ie Systematic Withdrawal Plan. The purpose is to get the money out of your pocket every month so that the money left over for your needs stays involved and grows.
But when the amount of PF and graduity come together, you should invest in FD and invest in low interest but safe capital or invest in the stock market or mutual fund.
So how to make this investment depends on your other sources of income, and there are many options available.
1. Post's Senior Citizen Savings Scheme
If you have no other source of income after retirement, you can invest in Post Office Senior Citizen Savings Scheme. In this plan, you get 8.5% per annum and your money is 100% safe with the Government of India. This is the highest interest rate and safest investment option available. You will get a quarterly interest payment. The term of the scheme is 5 years and the maximum investment limit is Rs. 15 lakhs. And the interest on it is taxable.
2. Purchase of Debt Mutual Fund
You can invest some amount in a debt mutual fund. They will give you interest according to the market trend. If interest rates fall, your NAV will increase. After holding for 36 months, you will get an indexation benefit and tax liability will be very low. You can also opt for systematic withdrawals depending on your monthly cash flow needs
3. Invest your money in Bank FD
In a bank FD, keep 10-15% of the money as a contingency fund even if you do not get a higher annual return. Alternatively, you can buy some liquid mutual funds or equity arbitrage funds. That option may also be more profitable than FD
4. Mutual Fund Dividend Payout
Put 20% -25% money in a balanced equity mutual fund with dividend payout options. Balanced Equity MF invests 65% in equities and balances in debt instruments. You can think of balances based on online value research rankings. Just buy a life plan and not a regular plan; You will save 1% on your earnings
In addition, as you grow older, your medical expenses will increase, so at this age, your and your spouse's Mediclaim will be unfair so that if for some reason you have to be admitted to the hospital, your investment will not be burdened.
Image source - DNA India
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