70 minus your age will give you the percentage of money that you can invest in equities. If you are 60 years, then invest 10% of the total corpus in equity based mutual funds. 20% you can invest in Monthly income plans of mutual funds where the risk is minimal. Another 20% you can invest in debt funds where the risk is almost negligible. It makes sense to invest in mutual funds as the returns are tax free. the remaining you can invest in Bank deposits. more
In general after retirement unless you are getting a regular pension you should keep your funds in fixed income funds. Equities give the maximum returns over a long period say three years and beyond but there is a downside risk also.
Therefore a general suggestion would be
Invest 20% in equity based funds
Invest 20% in balanced funds
Invest 40% in fixed income funds
And remaining 20% in liquid funds for emergencies.
Equities will yield 20% in long term,
Balanced funds will yield 12-15%
Fixed income will yield 10%
And liquid funds will yield 5%
Thus on an average you will get 10% returns but you have to watch fund performance and switch funds after monitoring performance more