In recent times, the lifestyle you are living and want to avoid any reduction in lifestyle after retirement, you should calculate future expenses keeping in mind the rising inflation. For instance, your month’s spending today is Rs 10,000, and the inflation rate is five percent annually, after 30 years, your monthly expenditure will be Rs 40,000. How and how you will invest in such a way that your lifestyle after retirement is also properly run and interest is also available after retirement. Equity is an investment option to give more returns than other asset classes, beating inflation in the long term. Mutual funds are the best source of investment in equity. Talking about retirement plans, Tata mutual funds, UTI mutual funds, etc., are better. But first of all, it should be seen how much money will be needed to maintain the existing lifestyle after retirement, what is your savings in the recent past, how much risk you can take, and how many years are left in retirement.
In fact, mutual funds are a better way to create a retirement fund. An investment portfolio for retirement can be created by bringing equity mutual funds as well as debt, such as PPF, gold, etc. If 15-20 years are left for retirement, multi-cap funds should be included in addition to large and mid-cap funds. For a long time, these funds will help in creating a good fund. If you have to invest in mutual funds for a long time, the systematic investment plan is better. This leads to average and good returns during market fluctuations.
Want to shift in debt from equity:
Maintaining investment in equity by the time of retirement can be risky. If the market has been declining for a few years, even if you are in profit, your profit may be reduced because of the market direction. A small portion of the amount saved for retirement can get regular income by putting it in the fund’s monthly income plan.
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