How to invest Rs 10 crore after property sale and save taxes. Are FDs right for investing windfall gains?

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2020 is when I last filed my tax returns. I hadn’t had a job since then and was having trouble managing my household expenses on a monthly basis. My kids are already out of college, and one has just got a job; the other is preparing for some exams.
 
I am 54 now and on the verge of closing a sale of my property for about 10 cr. Now i don’t own a house of my own and intend to buy one which might cost about 2cr thereabouts. I would probably look at trying to make around 2 lakhs per month (actual expense may stand at 1 lac post buying a house and maybe save the rest etc) through maybe a fixed deposit. How do I make all this possible? What kind of investments should I make? Is FD the right choice? How do I reduce the tax burden on the 10cr and ensure me and my family will have enough money to live a decent life.

 
By Sanjiv Bajaj, Jt. Chairman & MD, BajajCapital Ltd.
 
 
After purchasing a house, you will be left with Rs. 8 crores from the sales proceeds of your property. You can consider investing approximately Rs. 2 crores in debt-oriented mutual fund schemes such as Corporate Bond Funds and Banking & PSU Debt Funds. By using the Systematic Withdrawal Plan (SWP) option at an estimated rate of 6% per annum, you can generate a monthly cash flow of Rs. 1 lakh.
 
To save on taxes, you could invest Rs 50 lakh in Capital Gain Bonds. The remaining amount of Rs. 5.5 crores can be invested in Hybrid mutual fund schemes to help grow your invested capital. Within the Hybrid category, you can allocate your investable corpus between Dynamic Asset Allocation and Multi Asset Allocation category funds.
 
For Dynamic Asset Allocation funds, you might consider the HDFC Balanced Advantage Fund, ICICI Prudential Balanced Advantage Fund, and Nippon India Balanced Advantage Fund. For Multi Asset Allocation funds, the ICICI Prudential Multi Asset Fund and UTI Multi Asset Allocation Fund are recommended options. However, you can also save some amount in fixed deposits to get guaranteed income. 

Remember, investing such an amount requires a strategic asset allocation strategy. Always consult an advisor before investing such an amount. 

(Views expressed by the investment expert are his/her own. E-mail us your investment queries at askmoneytoday@intoday.com. We will get your queries answered by our panel of experts.)