I am a pensioner and want to invest around Rs3 lakh for a duration of five years in such a way that I get monthly or quarterly returns to supplement my pension.
Please suggest the options available for non-senior citizens.
You have not mentioned your average quarterly requirement which you wish to earn through your investments. Given the current market scenario, it is very difficult to work out a plan which could earn you an amount equivalent to your pension with a small investment. In the present situation, you should at best aim for a 14-15% annual return, which would translate into anything between Rs3,500 and Rs4,000 per month. For this target amount I would suggest 50% investment in debt schemes, 30% in equity-based schemes and 20% in fixed deposits. However, if you have a higher risk-taking capacity and you do not solely depend on these investments, then you may increase your exposure to equity-based schemes. Since the stock markets are witnessing high volatility and downward bias, higher returns are subject to significantly higher risks.
Answers are based on a technical analysis of the markets and individual stocks. The views expressed on this page are not the newspaper’s opinion and are provided for information purposes by Vipul Verma. Readers are requested to do their own research before participating in the stock markets. Neither the paper nor the information provider will be responsible for any outcome based on information provided here.