I am 55 years old and have Rs 50 lakh lump sum. How can I invest it to build wealth in 5 years?
I am 55 and have Rs 50 lakh as lump sum that I got from an earlier
investment
. With bank savings rates falling and markets volatile, what is the safest way to invest these funds so that I can build some wealth in five years.
Rushabh Desai Founder, Rupee With Rushabh Investment Services:
If you are looking for safety, investing in debt
mutual funds
and fixed deposits makes sense. However, in order to create wealth and generate inflation-beating returns, you need to get take some risk by investing in equity products. Keeping your age and medium-time horizon of five years in mind, if you agree to take some risk, consider investing in equity savings funds (hybrid funds) with 25-30 % exposure in pure equity. These funds will help you achieve inflation-beating returns with comparatively lower volatility and better consistency. Since equity savings funds are considered equity for taxation purposes, these will be tax-efficient as well. The current market volatility will help you generate better risk-adjusted returns, but an important thing to keep in mind is that chasing returns while ignoring risk is not the right strategy. If you are not able to stomach any kind of volatility, sticking with fixed-income products would be best.
My wife and I are both 40 and earn a combined income of Rs 25 lakh annually, with yearly expenses of around Rs 10 lakh. We have two children, aged 10 and 7, and we want to plan for their higher education and weddings, while also building our
retirement
fund. We have saved Rs 50 lakh so far. How should we allocate this across equity, debt, and other assets to meet these goals without overexposing ourselves to risk?
Adhil Shetty CEO, BankBazaar:
Given your goals and savings, a balanced approach works best. You can split your Rs 50 lakh corpus into three parts:
Rs 30 lakh (60%) in equity mutual funds, typically flexi-cap or index funds, for long-term goals like retirement (20+ years) and children's higher education (8-10 years);
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Beyond Text Generation: An AI Tool That Helps You Write Better
Grammarly
Install Now
Undo
Rs 15 lakh (30%) in debt instruments, such as PPF, short-duration
debt funds
or FDs, to cushion volatility and address nearer goals or partial education needs;
The remaining Rs 5 lakh (10%) should be retained as emergency funds by investing in high-interest savings or overnight funds.
Live Events
Your annual surplus of Rs 15 lakh can be split in the same ratio—60% in equities, 30% in debt, and 10% in liquid assets. As your children near 16, shift their education funds gradually to debt. Begin separate SIPs early for each goal, for each child, and aim to increase these annually. This simplified plan will help you grow your wealth without excessive risk and can be easily adjusted to accommodate evolving priorities. It is recommended that you consult a financial planner for a more customised plan that takes into account your specific risk appetite, liquidity, and other requirements.
Ask our experts
Have a question for the experts?
etwealth@timesgroup.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
28 minutes ago
- India.com
PhysicsWallah acquisition deal of Drishti IAS called off due to..., deal was worth Rs...
New Delhi: In the first week of April, we had reported that Vikas Divyakirti, who runs Drishti IAS coaching center, wanted to sell his education business and Physics Wallah had shown interest in buying the business. It was further mentioned that this deal would be completed for Rs 2,500 crore, making it the biggest deal in the world of edutech. Alakh Pandey is famous as PhysicsWallah among crores of students of the country. Now, as per the latest news coming in says that the much publicised acquisition of Drishti IAS by PhysicsWallah has been called off. The deal was in advanced stages but ultimately fell through due to multiple reasons, according to a report by Entrackr. PhysicsWallah was actively exploring acquisitions to strengthen its position in the civil services preparation segment as suggested by multiple reports in April. Drishti IAS is one of the most famous names in UPSC coaching, especially among Hindi-medium aspirants. According to the report, Drishti IAS evaluated the proposal after being approached by PhysicsWallah. However, considering its strong financial performance and independent growth, the company decided not to go ahead with the deal. The report added that Drishti IAS is currently not looking to raise external funds or be acquired. Founded in 1999, Drishti IAS has built a strong presence in the civil services coaching space. In the financial year 2023–24, the Delhi-based institute reported revenue of Rs 405 crore and a profit after tax of Rs 90 crore which indicates that the institute is also expected to post healthy growth in FY25. PhysicsWallah, which originally focussed on online coaching for engineering and medical entrance exams, has recently been expanding into UPSC and other competitive exams. It was in this regard that its acquisition of Drishti IAS was seen as a strategic step to strengthen its offline footprint and diversify its educational offerings, particularly ahead of its planned stock market debut. Both PhysicsWallah and Drishti IAS have not officially responded to the matter till the time of filing this report. (With IANS inputs)
&w=3840&q=100)
Business Standard
33 minutes ago
- Business Standard
Sebi attaches bank, demat, MF accounts of Choksi to recover Rs 2.1 cr dues
Markets regulator Sebi has ordered the attachment of bank accounts and shares and mutual fund holdings of absconding diamantaire Mehul Choksi to recover dues totalling Rs 2.1 crore in a case of violation of insider trading rules in the shares of Gitanjali Gems. The latest move followed a demand notice issued to Choksi on May 15, warning attachment of assets as well as bank accounts if he failed to make the payment within 15 days. The demand notice came after Choksi failed to pay the fine imposed by the Securities and Exchange Board of India (Sebi) in January 2022 in a case of violation of insider trading rules in the shares of Gitanjali Gems Ltd. Choksi, who was the chairman and managing director as well as part of promoter group of Gitanjali Gems, is the maternal uncle of Nirav Modi. Both are facing charges of defrauding state-owned Punjab National Bank (PNB) of more than Rs 14,000 crore. Both Choksi and Modi fled India after the PNB scam came to light in early 2018. In April, Choksi was arrested in Belgium following an extradition request by Indian probe agencies. He was located in Belgium last year when he went there for getting medical treatment. He had been staying in Antigua since 2018 after leaving India. Modi was arrested by the Scotland Yard Police in March 2019 and is currently in jail in that country. In an attachment notice dated June 4, Sebi said the pending dues of Rs 2.1 crore include the initial fine of Rs 1.5 crore and interest of Rs 60 lakh. To recover the dues, Sebi asked all the banks, depositories -- CDSL and NSDL -- and mutual funds not to allow any debit from the accounts of Choksi. However, credits have been permitted. Further, Sebi has directed the banks to attach all accounts, including lockers, held by the defaulter. Initiating the recovery proceedings, Sebi said there is sufficient reason to believe that Choksi may dispose of the amounts in the bank accounts, mutual fund folios and securities in the demat accounts held with the depositories and "realisation of the amount due under the certificate would, in consequence, be delayed or obstructed". In its order passed in January 2022, the regulator imposed a penalty of Rs 1.5 crore on Choksi and restrained him from the securities market for one year. Sebi had found that Choksi communicated unpublished price sensitive information to one Rakesh Girdharlal Gajera, who sold his entire shareholding of 5.75 per cent in Gitanjali Gems in December 2017 with the intention of avoiding loss ahead of any event which may lead to disclosure of fraudulent issuance of LoUs (letter of undertaking) to Gitanjali Group and magnitude in public domain. It was noted that fraudulent LoUs were issued on behalf of entities belonging to the Gitanjali Group, including GGL. "Noticee no. 1 (Choksi) was found to have communicated UPSI (unpublished price sensitive information) to Noticee no. 2 (Gajera) without any underlying legal obligation or any legitimate purpose," Sebi had said in its final order. Through such activities, the two persons had violated the provisions of the PIT (Prohibition of Insider Trading) rules. In May 2023, Sebi sent a notice to Choksi directing him to pay Rs 5.35 crore in a case pertaining to fraudulent trading in the shares of Gitanjali Gems.
New Indian Express
41 minutes ago
- New Indian Express
Fintech start-up Decentro to flip back to India; raises Rs 30 crore
BENGALURU: After PhonePe and Razorpay, now Decentro, the API banking platform, will shift its parent entity from Singapore to India over the next 12-18 months. The decision reflects a broader trend of Indian fintech companies choosing to domicile in India. "This flip is a strong statement of our commitment to India and our belief in its capacity to foster and scale global financial infrastructure companies. We are building not just for India, but from India for global opportunities,' said Pratik Daudkhane, Co-founder of Decentro. Fintech start-up Decentro, which handles over Rs 50,000 crore in annual payment volumes, on Friday announced that it has raised Rs 30 crore in its Series B funding round. So far, the company has raised a total of 8.19 million dollars. The round was led by InfoEdge Ventures, with participation from Stargazer Growth—backed by Groww CEO Lalit Keshre—and existing investors including Uncorrelated Ventures. The funding comes at a time when Decentro has turned profitable. The company said it will use the fresh capital to drive enterprise adoption, improve its product capabilities, and strengthen go-to-market efforts across financial institutions such as banks, NBFCs, fintech firms, and digital lenders. 'This fund raise allows us to double down on what's working well; deep partnerships with enterprise customers and building products that power mission-critical financial flows. India is where it all started, and we want to make this our long-term base with the eventual flip,' said Rohit Taneja, Co-founder & CEO of Decentro. Decentro's plans come at a time when Indian fintechs are increasingly choosing to base themselves in India. Recently, unicorn Razorpay moved its domicile from the US to India and will pay about Rs 1,275 crore in taxes. The company is aiming for an IPO before the end of the calendar year 2026. In 2022, another fintech player, PhonePe, also shifted its base from Singapore to India, with its investors paying Rs 8,000 crore in taxes to complete the move.
