Currently, some 70 per cent of my investments are in fixed income and the rest in equity. My equity fund investments are in Large, Mid, and Mid & Small cap equity funds. The total value of these and some equity shares I have is ₹30 lakh. As I'm, approaching retirement, would it be advisable to switch these investments to balanced funds over a period of time?
- Shirish Shah
Evidently, you are asking this question because you feel that equity investments are only marginally suitable after retirement. Nothing could be further from the truth. After retirement, you need the high returns of equity even more acutely in order to counteract inflation.
As it happens, we answered a reader' question on this subject some time back: How much should I save for a peaceful retirement? Our editor, Mr Dhirendra Kumar has also explained this in this article: Inflation, Retirement and Old Age Poverty and Risk and Returns in the Twilight Years.
Far from reducing your equity exposure, your primary concern should be to enhance it so that you have a means of inflation-beating income.