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Should I continue with the selected funds?

Dhirendra Kumar reviews the mutual fund portfolio of a senior citizen


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My wife and I are senior citizens. I have been investing in four funds: Axis Long Term Equity, Franklin India Taxshield, ICICI Pru Equity & Debt and Sundaram Midcap Fund. Are these investments satisfactory or do they need some change? I am not looking to save taxes.
- KK Madan

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The first two funds that you have listed are tax-saving funds. They come with three-year lock-in periods. Being a senior citizen, you may need this money at short notice. So, if there is no need to save taxes, why should you block your money unnecessarily for three years? You may reconsider these two funds. But you cannot withdraw the money that you have already invested in them before the completion of the lock-in period.

Also, any of the above-mentioned funds may not be appropriate for someone like you who has retired and can save. You need to be a little more conservative and prepare yourself to face market decline, as people are generally not prepared to face any big decline in the market at this stage of life.

A balanced fund is probably the only place where you should be. While the downside is reasonably protected in this fund, its design will provide you with reasonable stability. Just one or two balanced funds should be sufficient for you.

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