Passive equity funds in retirement

You can feel the wind in your hair and smell the Earth beneath your feet. At last, you have approached retirement and it's time to reap the rewards of all those years of work. With a significant portion of your retirement corpus invested mostly in fixed deposits and maybe other fixed-income instruments, you are confident of making ends meet. However, don't get lulled by the steady income stream. You will still have to contend with inflation. In the initial few years, your interest income might be more than your cost of living. But inflation will soon catch up with you. Moreover, there could be unforeseen circumstances that can drive up your bills! To avoid such outcomes in your golden years, you may allocate a portion of your retirement savings to equity as per your risk appetite. While you will have to contend with short-term gyrations, exposure to equity may allow you to beat i

This article was originally published on March 20, 2024.