I'm 53 and I work with a private company. I have invested Rs 15 lakh in equity through VR Stock Advisor recommendations and Rs 15 lakh in equity mutual funds. I also have Rs 50 lakh in PPF and EPF. I will retire in 2026. Should I continue investing in equity?
- RK Gupta
Well, I believe at an asset-class level, you should continue investing in equity because you have about Rs 30 lakh invested in equity, which is about 35-37 per cent of your total corpus of Rs 80 lakh, including fixed-income alternatives.
We generally believe that this is a kind of allocation to the equity that even a retiree seeking regular income from his investments should have to be able to generate inflation-beating returns over the long term. So, from that perspective, I would say that your equity allocation in the portfolio is good enough and you should continue.
But what is more important is to focus on the composition of this equity allocation. If this allocation is tilted heavily towards mid and small caps, then I would suggest that pare them down and restrict yourself largely to high-quality large-cap companies. But if that is already the case, then it should be fine.
This article was originally published on April 12, 2021.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
