Can I invest my retirement money in HDFC Balanced Advantage Fund?
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One, do you have a pension or income to take care of your living expenses after retirement? If yes, you may consider investing your retirement corpus in equity mutual funds. However, you should choose the scheme based on your investment horizon and risk profile. Typically, mutual fund advisors and financial planners ask retired investors to stick to large cap and multi cap mutual fund schemes.
If you are looking for a regular income after your retirement to take care of your living expenses, you should invest the money in a government-sponsored scheme like Senior Citizen Savings Scheme that offers assured returns. You may also consider investing in post office monthly income plan. If you still have money left, you may consider investing in a liquid or ultra short duration fund and use the Systematic Withdrawal Plan or SWP to withdraw a fixed sum regularly to supplement your income. Please make sure you only withdraw your returns to keep the capital intact.
HDFC Balanced Advantage Fund is a scheme in the balanced advantage or dynamic asset allocation category that manages its portfolio dynamically based on the market conditions. However, you should keep in mind that the equity investment in the portfolio can go up if the market conditions are favourable. So, invest in these schemes only if you are ready to take risk of investing in stocks. Remember, these are equity schemes that might offer you a good downside protection. Do not overlook the risk in them.