Question: At age 35, my annual salary package is Rs. 5 lakh. I have prior investment of nearly Rs. 80,000 in MFs. But I want to make fresh investments in the form of pension plans. Which type of pension plan is right for me?
Answer: Pension plans can be bought from MFs or life insurance companies. There are 3 pension focused plans from MFs – 2 are balanced funds & other one is equity-oriented. In MF pension plans (PPs), there is only the growth phase & after certain years, they would give you a lumpsum amount, not the regular pension. Life insurance companies offer PPs with varied asset allocation. You may keep even 100% in equity or debt. It’s always better to diversify. For your retirement needs, create a separate portfolio & spread among the variants. Keep tax benefits in perspective & create wealth for your retirement. Have more queries? Feel free to write to us.
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