Invest In Gold And Silver MFs And ETFs For Tax Efficiency

I recently retired with a Provident Fund of ₹70 lakh and equity and mutual fund investments of around ₹60 lakh. I plan to sell my house for ₹60 lakh and buy a smaller apartment for ₹30 lakh.

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NITESH KUMAR, email

My company-provided health insurance for my wife and me is no longer available. Should I buy a policy or keep ₹50-60 lakh in a fixed deposit (FD) for medical needs?

Keeping such a large amount only in FDs is not advisable since the returns may not keep up with rising medical costs. It is better to buy a family floater health insurance policy for you and your spouse.

Depending entirely on FDs can be risky because one major medical emergency could erode a significant part of your savings.

You can keep ₹15-20 lakh as an emergency fund in FDs and liquid funds for immediate needs. The remaining amount can go into a hybrid mutual fund. Over a period of 5 to 10 years, this can provide regular income through a Systematic Withdrawal Plan; it is tax efficient and helps your principal grow with the power of compounding.

SUHEL CHANDER, CFP, Handholding Financials

PRIYAM DUTTA, email