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Home / Money / Personal Finance /  How to invest 50 lakh received as a life insurance claim?

How to invest 50 lakh received as a life insurance claim?

I am sure I would not need this money for at least 10-12 years. Where I should invest?

I have received 50 lakh from my husband's life insurance policy a few months ago.

I am in a very critical situation. I have received 50 lakh from my husband's life insurance policy a few months ago. I am 37 years old, with one kid. I am getting a monthly rent which I think would be sufficient for my kid's educational expenses. I primarily want to invest the sum received from the life insurance company for my old age. I am not working but have rental income. So, maybe I want to invest this money for 15-20 years or so. I am sure I would not need this money for at least 10-12 years. Kindly suggest where I should invest.

I am in a very critical situation. I have received 50 lakh from my husband's life insurance policy a few months ago. I am 37 years old, with one kid. I am getting a monthly rent which I think would be sufficient for my kid's educational expenses. I primarily want to invest the sum received from the life insurance company for my old age. I am not working but have rental income. So, maybe I want to invest this money for 15-20 years or so. I am sure I would not need this money for at least 10-12 years. Kindly suggest where I should invest.

--Devi R

--Devi R

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By Divam Sharma, Co-Founder, Green Portfolio

Considering that your expenses are taken care from your rentals, and you want to invest with a minimum horizon of 10-12 years, we would suggest the following strategy to you:

1) Take a medical insurance policy in your name. This will take care of any unforeseen medical expenses.

2) Invest 25% of your capital (i.e. 12.5 lakh) equally in SBI Magnum Gilt Fund- Growth and HDFC GILT Fund. Investment in GILT Funds will ensure capital protection, higher and consistent yield on investments.

3) Considering your time horizon of 10-12 years, we suggest that you should park the balance money in equity mutual fund schemes. However, considering that markets are currently at higher valuations, you should park your balance investments in a staggered manner and allocate 7.5 lakh per month (for next five months) in the following mutual fund schemes:

- HDFC Index Fund (Sensex Plan)- Growth

- Axis Smallcap Fund- Growth

- Axis Midcap Fund- Growth

- Quantum Long Term Equity Value Fund- Growth

- Motilal Oswal Nifty 50 Index Fund- Growth

You should also regularly assess your investments and can also take guidance from a SEBI registered investment analyst.

(Views as expressed by the expert are his own.)

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