Retirement corpus: Should I break all my FDs and invest in MFs instead?

CEO, BankBazaar, answers the query: It is not a good idea to move your entire fixed deposit corpus to mutual funds at one go. Ladder your FDs in a manner that you have a fixed amount maturing at regular intervals to have surplus liquidity at predefined intervals. Hence, over the next 2-3 years, you can shift your corpus in mutual funds via SIPs. At any given time, you should have 30% of your corpus in FDs.Start an SIP with the surplus from your pension as well. Spreading out your mutual fund investments over time means you get a better cost averaging benefit. You can invest in index funds and bluechip funds from reputed fund houses.