This article mostly looks at the risk of inflation negating the growth of safe investments in fixed income securities. While I agree that even a retired person needs to have a portion of his savings in equity, the author should have dedicated more space to how this can be achieved safely. Three tips: 1. Choose top-rated diversified equity mutual funds that have performed over long periods 2. Invest regularly (via SIPs) to benefit from rupee cost averaging. If you have a lump-sum, use STPs (systematic transfer from debt to equity) 3. Re-balance when the market peaks or dips and/or the portfolio balance crosses a certain threshold. I have done this with great success for many clients through the 2008 crash, the subsequent recovery, the long lull and through this current bull market.
Posted on: Wed, 24 Sep 2014 05:31:42 +0000
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