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POSTED BY ON January 18, 2013 11:27 am COMMENTS (4)
Hi guys,
I am asking this on behalf of my father who has just sold his IOCL shares for approx. 6 lakhs which he had been holding since a long time. As the rates of the shares reached acceptable level after ages, he sold them.
Now the thing is I don’t want him to invest that amount into another useless product or stocks. Instead I would like to know the best option through which he can keep the money invested and if possible, also generate a regular income, as he is retired.
Kindly help me out in resolving this matter. I would be highly grateful. All your suggestions are welcome 🙂
Thanks,
Zaib.
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Why not put the money in Senior Citizen Saving scheme for some years .. its a good option for senior citizens .. I am assuming that generating income is not the MAIN IDEA , but a GOOD TO HAVE option .
Manish
Thank you guysfor your valuable comments, I’m really comfortable with MFs so would like to go with Ashal Jauhari’s solution here 🙂
Dear Zaib, ask your father to split the amount into 2 parts. 4L+2L. Invest 4L Rs. into HDFC MIP Long Term Plan. Remaining 2L Rs. are to be invested in Quantum Long Term Eq. fund. Please invest in growth option of both funds.
Do nothing for next 1-2-3 years. As & when your father need some money, please redeem some units from MIP after this waiting period. As he ‘ll be redeeming after completion of at least 1Y, the gains ‘ll be taxable @ 10.3% rate only with out indexation or 20.6% with indexation.
The Quantum Long Term Eq. fund ‘ll provide the kick in return over the long period of time.
Thanks
Ashal
Some options are:
Monthly Income Plans dividend option (debt oriented MFs)
senior citizen scheme from PO or Monthly income schme
tax free bonds
dont put your egss in one basket and spread them around. Take care of tax outgo