I retired a few months ago and would like to invest my Rs 40 lakh savings in a fund that would pay me monthly dividends to meet my monthly expenses. The fund should be less volatile.
Swaminathan Pillai, Mumbai
You need to know that mutual fund do not guarantee dividends. If you are looking at safety, you can choose debt funds with exposure to only high-quality instruments. Based on your tax slab, you may choose systematic withdrawal or dividend option. If you are looking at equity mutual funds with dividend options, you may get higher yield, but your principal is subjected to high volatility. As you are looking for low volatile instruments, equity mutual funds may not be suitable. Based on the information you have shared, it is not clear if this is the only retirement corpus that you have to depend on. Retirement corpus should be best split in a manner to create a regular income and also have money for any extraneous incidents.
