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Mutual funds to invest monthly payout from corporate FDs

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Last Updated: Sep 25, 2019, 04.43 PM IST
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My son is turning 18 this month. I want to gift him Rs 50 lakh from my liquid fund investments. I want to invest it safely to get 8-10 per cent annual return. I want a monthly payout. And I want to invest the payout that I will get every month in equity mutual funds. Can you suggest where should I invest?

I am planning to invest in Shriram Transport Finance Company or Bajaj Finance fixed deposit with a monthly payout. Please suggest.
--Anand Arwind Deshmukh

Deepali Sen, Founder, Srujan Financial Advisors, responds:


You can invest in corporate FDs from Bajaj Finance or Mahindra Finance or HDFC for five years or more with a monthly non-cumulative interest option.

The monthly interest that you will earn can be invested in large cap equity mutual fund schemes like SBI Bluechip Fund, ICICI Prudential Bluechip Fund, Aditya Birla Sun Life Focused Equity Fund, HDFC Top 100 Fund.

You can also consider investing in mid cap equity mutual funds like HDFC Mid-Cap Opportunities Fund, Axis Midcap Fund, Franklin India Prima Fund, and DSP Midcap Fund.

You can invest the amount in a ratio of 85:15 in these schemes respectively.

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