My father is a 50-year-old salaried govt employee in India looking to invest ₹10L for ~5 years. Priority is capital safety, low volatility, liquidity, simplicity (max 1–3 products), and returns that beat inflation. Small fluctuations are fine but large drawdowns are NOT acceptable. Emergency fund + health insurance already covered, no major liabilities expected, and he falls in a tax slab. This is not his entire life savings and he’s not an experienced investor.
What would be the best practical 2026 allocation among FD, debt mutual funds, conservative hybrid funds, balanced advantage funds, equity savings funds, arbitrage funds, govt bonds, etc? Which “safe” investments/options should actually be avoided due to hidden risks or poor post-tax returns. Please suggest some good available options too.