Where should I invest Rs 75 lakh retirement money to get maximum return?

economictimes.indiatimes.com:

I am 60 years old and received Rs 75 lakh on retirement a few days ago. Where should I invest this sum for maximum benefit? Adhil Shetty, CEO, BankBazaar: As you are a retiree, your investment decisions should focus on preserving capital, generating income and managing risk. If this is only a part of your retirement corpus, you can invest some or most of it in fixed income schemes.

Your best options are fixed deposits with reputable banks, Senior Citizens’ Savings Scheme (SCSS), which offers a higher interest rate than regular FDs, and the Post Office Monthly Income Scheme (POMIS). You can also consider annuity schemes, such as the Pradhan Mantri Vaya Vandana Yojana, as well as other annuity plans that allow you to invest a bigger chunk of your corpus at once. If Rs 75 lakh is your only source of income, or if it is a big part of your retirement corpus, then fixed income investments alone may not be sufficient.

The returns from annuity plans are usually in the range of 4-6%, and those from small savings schemes and FDs are around 7-8.5%. Assuming an average return of 8%, you will earn an interest of Rs 50,000 per month, or Rs 6 lakh, in a year from Rs 75 lakh. You may have to invest a portion of your capital in equity so that you earn around 12% returns.

This would allow you to withdraw Rs 6 lakh in the first year, and then step up this withdrawal amount by 5% every year, for the next 22 years. You will also have to ensure you are adequately insured for any healthcare emergency. You may want to set aside a part of this income as emergency funds, but this may reduce your future interest income and financial independence.How should I decide if a share is worth holding over a period of time? I had bought shares of SL Tech