Guide me.
My parents will most likely retire in the next 5–6 years. We’re from a middle class family, so most savings over the years went into my education and my sister’s marriage. Right now they have around ₹5 lakh which we want to invest properly for retirement instead of keeping it idle.
I’m still new to investing and trying to learn about Indian markets, mutual funds, asset allocation, etc. From what I’ve understood so far, putting everything into risky smallcaps probably doesn’t make sense at their age, and mutual funds may be safer than directly picking random stocks without knowledge.
Current thought was maybe:
- Majority in mutual funds/index funds
- Smaller portion in fundamentally strong companies
- Focus more on stability than aggressive returns
Would like to know how experienced people here would approach this situation if the investment horizon is around 5–6 years and capital protection is also important.
Would also appreciate hearing:
- What kind of allocation would make sense
- Which companies/funds are generally considered reliable for long-term holding
- Mistakes to avoid for retirement investing
- Whether SIP approach is better than deploying full amount together
Trying to learn, not looking for quick-rich ideas.