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Should a retiree invest in equity-oriented hybrid funds?

Dhirendra Kumar talks about the factors that should govern a retiree's equity allocation

Dhirendra Kumar talks about the factors that should govern a retiree's equity allocation

Is it fine for a 72-year old to invest in equity-oriented hybrid funds? Or should one shift to a conservative or a balanced advantage fund?
- Bhaskar Aglave

It depends on two things. Firstly, one's experience with the volatility of the equity market. If you have invested in equity before, have at least three years of experience, and are used to the ups and downs of the market, you can look to invest in equity-oriented funds.

The other factor to consider is your income requirement. If this is your investment on which you have no income dependence, it can well be into equity. If you have prior equity investing experience but do not need any income from the investment, you should be invested in an aggressive hybrid fund. However, if you have absolutely no experience of equity investing and need income from this investment, you should be invested in a conservative hybrid fund. Hence, it depends on your experience with the market and income dependence.

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