In order to tackle the problem of falling interest rates, retirees need to build resilient portfolios instead of simply depending on fixed deposits for their income. Fixed deposits prove to be highly inadequate instruments for generating a fixed income, and in the context of falling interest rates the problem is even worse. Equity is the only solution. But retirees need not move their entire corpus to equity, but instead maintain a careful allocation between fixed income and equity in order to grow their corpus, while also not taking on too much risk.
I have Rs 12 lakh in surplus. Should I prepay my home loan or invest for monthly income of Rs 25-30k?
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