RD and KVP do not give the chance to participate in higher rate of interest cycles. Further, high inflation will be a dampener.

You ought to have some equity exposure. You could invest the income from FDs through a systematic investment plan. Equities are also recommended as your kid's schooling is still ten years away. You can generate a basket of three-four money. You can think about large-cap money such as HDFC Top 200 and Birla Frontline Equity. From the multi-cap stable, you can go for HDFC Equity or Fidelity Equity. Finally, hybrid money such as HDFC Prudence and Birla Sun Life 95 Fund can be thought about.

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You have adequate health cover. Think about a term cover that is five-seven times your annual income.

You ought to revisit your retirement need. While you have factored in some increment, it needs to get further adjusted. To make positive, you fulfill all of your targets, you need to be proactive in managing your portfolio.

Source: [HT]