<p><strong>For Rs.50 Lacs</strong><strong> –</strong> A mix of following options could be considered (1) Senior Citizen Savings Scheme (SCSS) (2) Short term accrual debt funds (3) Systematic Transfer Plan (STP) from debt fund where only capital appreciation amount is transferred to equity fund.</p>
<p><strong>For Rs.25 Lacs</strong> – A mix of balance funds and multicap funds could be considered.</p>
<p><strong>Note:</strong> <em>Don’t offer him midcap and small cap funds. SCSS offers decent and guaranteed interest rates which could be equal to or more than debt funds with no volatility. It is not necessary to target all money in mutual funds.</em></p>
<p><strong>Disclaimer:</strong> <em>Every investor is different. There could be multiple solutions to the same case. Apply your own judgement and prudence.</em></p>