How Should a Perfect Retirement Portfolio Look Like: 5 Investment Options

Perfect Retirement Portfolio

Introduction to Perfect Retirement Portfolio

Preparing for a hassle-free life post-retirement is all about managing risks and parking investments at an early age.
Therefore, a retirement portfolio is all about planning ahead of time, by segregating the financial corpus, as per returns.
As a rule of thumb, you would want to have the perfect mix of high-yield, medium-yield, and slow return policies. This approach takes care of financial irregularities, if and when they appear while keeping the cash flow intact, post-retirement.
In the subsequent sections, we shall look at the best forms of investment that should feature in your retirement portfolio, for maximum returns. Read this article to know what are the options for it.

Best Forms Of Investment Options Available: 

  • Start with Equities

Investing in mutual funds, especially as a part of the retirement portfolio, is definitely a rewarding recommendation.
However, the most productive approach would be to opt for a diversified fund. In case you are looking for more actionable advice, consider SIPs, which provide you an easy route to mutual fund investments.
Besides that, you can also consider ELSS or the ‘Equity Linked Saving Scheme’ as a tax-free, equity-driven investment. However, the latter comes with a 3-year lock-in period.

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  • Consider Fixed Income

Ever heard of fixed deposits!
If yes, then the best time to invest in them is now, with an eye on the retirement portfolio. Moreover, if you park money in a PNB Housing Finance FD or similar instruments that offer competitive interest rates, it becomes easier to build a sizable corpus for the future.

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Perfect Retirement Portfolio
Perfect Retirement Portfolio

A majority of FDs offer decent rates of up to 7 percent and allow you to opt for customizable savings, either as laddering FDs, Sweep-Ins, or non-cumulative FDs right before retirement to enjoy fixed periodic income.

  • Opt for PPF Investment

In case you want to get decent returns on your investments while making them tax-free, Public Provident Fund seems like a better option.
A good thing about PPF investment is that it comes with a 15 year lock-in period. This attribute eliminates the chances of premature withdrawals and helps you save better for the post-retirement lifestyle. Moreover, while FD interest rates might vary, you get a 7.6 percent rate on PPFs, inclusive of the EEE perk.

  • Invest in the National Pension Scheme

Investing in the National Pension Scheme is a pretty good approach to financial autonomy after retirement. Moreover, there aren’t any chances of early withdrawals as, in that case, you only receive a mere 20 percent of the entire corpus. The best thing about NPS is the tax benefit that comes along.
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  • Parkin Debt Funds

If you are significantly taxed, debt funds are good money parking choices, considering the tax-efficiency on display.
While the likes of PNB Housing Finance FD are acceptable portfolio inclusions, debt funds offer exceptional liquidity and even promise higher returns.
Although we know that there are many investment options available in India at present time still choosing one of the best from them is a tough task.
The best retirement portfolio is the one that includes each one of the mentioned funds, along with steady medical insurance and your own home.
While the mutual fund and FD interest rates are often debatable and subject to financial discretion, the likes of NPS and PPF lend a lot of solidarity to a retirement portfolio and prepare you better for the future.

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