Investing 101: How to invest in equities without risking your capital

A financial advisor suggests a strategy for retirees or individuals looking for additional income to boost their wealth creation journey: invest in a liquid fund that mirrors CRISIL Liquid Debt Index and transfer capital appreciation profits every month to a Nifty 50 Index fund. This way, the initial investment remains accessible while transferred profits take on market risks for higher returns. This strategy generated returns of approximately 10% in the last 21 years for an investor and could work well for others looking to generate extra income while minimizing risks. Mutual fund houses have this feature of transferring capital appreciation between schemes.