Investment of lump sum amount for long term

POSTED BY Komal Rathore ON July 16, 2013 1:42 pm COMMENTS (3)


I am expecting a lump sum amount as part withdrawal of PF and SA from the current employer. I would like your opinion on the best suitable options for long term secure investments for this. I would like the risk profile to be medium-low and not high risk. The investment period is around 15-20 years and I do not see a need for money in short term. I have already made investments in postal schemes like PPF, RD and MIS etc.

Kindly suggest best long term investment funds for lump sum amount.


3 replies on this article “Investment of lump sum amount for long term”

  1. Ramesh says:

    Define your risk profiles?

    What have you thought about inflation and opportunity risks?

    1. Komal Rathore says:

      Hi Ramesh,

      I am 35 yr old and working in private sector with annual income of 12L. I would like to keep the profile diversified but not on high risk, hence 60-70% in debt and 30-40% in equity.

      Hope this answers.

      1. Ramesh says:

        Option I: Keep 50% in equity (opt for a large-mid cap equity fund like Franklin Prima Plus or something like Franklin Blue Chip / DSPBR Top 100) and rest 50% in a long term income debt fund (eg Templeton India Income Opportunities / Income builder). Rebalance every 2-3 years.

        Option II: Invest in something like FT India Life Stage FOF 30s (which currently has around 50:50 equity to debt ratio). Or just use that as a guide for option I funds.

        Option III: Invest in FT Dynamic PE ratio fund.

        The latter two options are also very conservative.
        A period of 15 years is more than enough time for inflation to destroy the purchasing power of your money. Time is on your side and make use of that.

        Besides, you should look at your whole portfolio in a holistic manner and just not treat this extra money in a separate way, since you have mentioned that you have invested in MIS and other kind of debt schemes.

        Overall, considering your age, you should have at the least 50-60% in equities for your whole portfolio.
        Hope this helps you.

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