Hi
Assumption : Conservative investor
Step 1 :
Find out the monthly requirement(Amount).
Step 2:
First make a contingency fund (This should be easily acessible . but dont put in savings bank account. you put this in either liquid fund / FD linked with your savings account where you can acess the money easily and earns higher interest than savings also)
Step 3:
Write down the goals if he has any.Link the investment decisions to the goals.
Step 4:
Fixed deposit:
Now a days fixed deposit are giving us more interest rates.
To find out the latest interest rates. pls visit this webpage
http://www.thehindubusinessline.com/industry-and-economy/banking/article3451749.ece
1.you can book a ladder of fixed deposit(one at may, next bunch in june and next one in july) and opt for quarterly payout so that you will get the interest amount consistently every month.(Atleast the entire amount what he is goi to invest can be separated for the next three months so that he periodically earns interest).
2.Separate in diff denominations (25000, 50000, and 1 lakhs) the fixed deposits and book it. dont put all your money in one fixed deposit. Bcoz if we want to take out your money in case of emergency then entire amount fixed deposit need to be broken in case if you invest fully..
- Invest in a 5 yr deposit with quartely interest payout.(Plan the FD according to your goals. if you dont have any look for the longer duration 5 yrs)
This is an article regarding to the Debt Funds. Check out whether it suits your goal and whether he able to stomach the risk
http://www.thehindubusinessline.com/features/investment-world/article3459501.ece.
Senior citizen savings scheme
http://www.thehindubusinessline.com/features/investment-world/article3266348.ece
This provides the basic of this scheme. UP to 15 lakhs we can invest in the above scheme.best one for the senior citizen. and gives you better returns than MIS Post office
Step 5:
These are the above avenues which will help you to earn monthly income (fixed income securities).
Now calculate how much extra monthly income u get on doi the investment.
Find out the actual Surplus monthly income. split that into two
Two options:
-
Once again the extra money monthly can be put to the Recurring deposit . Rd can also be used to link any of the short term goals.( 1 yr to 5 yr)
-
Investing in Balanced Fund
This is a very conservative fund which have atleast 65 percent equity and 35 percent Fixed income securities. To give a inflation beating returns atleast 20 percent of your investment need to be done in equities.
Fund suggestion : Hdfc prudence/ Hdfc balanced.
These two are well managed funds which has provided very good returns for the investors in long term.
you can start Sip on any of the above funds....
Give nominee for all the investments
If you have any other queries pls post...
