Home>Questions>Which are the best Mutual Funds? I don't want to take too much risk. I also want regular income from my investments.

Which are the best Mutual Funds? I don't want to take too much risk. I also want regular income from my investments.

I am retiring in 3 months. I have around 60 lac in bank and FDs. Since the interest rates are very low these days I am suggested by my son to invest in Mutual Funds.


Different mutual funds are better suited for different investors depending upon their investment objectives. You can read about the types of mutual funds and the parameters to keep in mind before making an investment decision here. Since you do not prefer high exposure to risk and require regular income, Fixed Deposits and Debt Funds are the options available to you.

Debt funds invest at least 65% of their corpus in short, medium and long term debt securities.

As compared to FDs, Debt Funds provide better returns at marginal extra risk, better tax implications and better liquidity. Debt funds have historically provided returns ranging between 6 to 10% per annum, which is higher than that provided by FDs.

Depending upon the investment horizon that you are looking at, the choice of the mutual fund most suited to you will change.

Groww manages Better Than FD Returns with Low Risk and Better than FD Returns with Debt Mutual Funds to meet objectives of risk averse investors with the objective of earning regular income.  

If you are looking at a short investment horizon, say 1 to 3 years, Reliance Floating Rate Fund - Short Term and Franklin India Ultra Short Bond Fund are two Debt Funds that you should evaluate. Franklin India Low Duration Fund and HDFC Short term Opportunities Fund also cater to investors with similar investment objectives as yours.

I hope we have been able to answer your question satisfactorily. For a more detailed discussion on an investment strategy crafted specially to meet your objectives, contact us or visit our website.

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