where to invest safely VRS money to beat inflation and monthly expenses ?

Question

Amount is Rs20 lacs and my age is 54. Having one child his grand son and my wife and son's wife in the family. My son is getting monthly income which is 3/4th of our monthly expenditure.

Answer 1

I assume that you have no other source of income or activity ( other job / self employment etc).

At your age, safety of the capital is the most important thing. Earnings should be secondary to this. You should not loss your capital in whatever you invest ( not beyond a miniscule percentage). With this in mind, please do not invest in MLM schemes, schemes from unofficial / non-government schemes etc. which might offer unprecedented returns on investments. Also do not invest in purchase / renovation of home. Please DONT!!

You can invest in Post office instruments ( PO have monthly interest schemes, too), some money in nationalised bank, a part of money in Mutual fund units. Bulk of your investments must be in these instruments.

You can also think and plan about some small business which you could do on your own. Do not invest lot of your money in the business. Also until and unless you recover your investments, do not take loans, leases etc. Alternately, you can look for some other job in nearby areas.

I wish you all the sucess and peaceful, fruitful life after VRS.

Answer 2

avoid secondary stock market completely, and even if u do want to invest there, choose only companies wt good fundamentals (tata companies, ITC, Satyam, wipro, TCS,Sterlite ) and enter only when there is a drop. present valutions are just too high to enter.
a part of the funds should be invested in fixed deposits, most banks are offering 9.5% to 10.5% for 2 to3 yrs . but the interest is taxble.
depending on the region where u stay, you could invest in a property and give it on rent. If its a commercial property, u'd be able to earn a good rate of rent. and properties always appreciate..
other options are Post office,PPF,govt bonds.

whatever u do, pls do not try to be over ambitious and always keep an average acheiveable rate of growth in mind.. 10-12% is fair enuf..anything above that is a risk..