Should a retiree stop investing in small-cap funds?

I am a retired person with some SIPs in small-cap funds. Since I'm retired, should I stop investing in small caps? If yes, where should I move my money?
- S.M. Telang

Ideally, one should have some market experience before investing in small-cap funds. By now, the kind of decline that we have seen in recent times, you would have figured out where you stand and what type of funds you are more comfortable with.

You've mentioned that you have invested some portion in small caps but I don't know whether it is 5 or 10 per cent of your portfolio. If you're comfortable with your investment, have a sound understanding of the small-cap dynamics and have already experienced a big decline, then, by all means, continue with your small-cap allocation. However, if not, move all your money to a set of multi-cap or aggressive hybrid funds.

This article was originally published on January 28, 2020.