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Want To Retire Comfortably With A Solid Mutual Fund Portfolio? Read This! - Outside View by PersonalFN

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Want To Retire Comfortably With A Solid Mutual Fund Portfolio? Read This!
May 14, 2018

You are going to spend every Indian summer in Europe post-retirement.

How does it sound?

You will really have to be a monk or an insipid person to call it a bad deal.

Do you want to know the secret of rich and peaceful retirement?

Frankly, there's no secret.

Successful retirement planning is a science.

  • Start early
  • Estimate your post-retirement inflation-adjusted cash-flow requirements
  • Consider your life-expectancy
  • Take into account your risk appetite too
  • Invest regularly and intelligently
  • Review your portfolio periodically

And...you are done!

But, it's easier said than done.

Curbing the temptation of retail therapy is difficult, which makes it nearly impossible for many of us to invest regularly. If you overcome this hurdle, investing intelligently is another task where people often fail.

Being influenced by the emotional appeal that insurance companies create to market their pension and retirement plans, you are likely to end up with a bad deal.

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We probably shouldn't be telling you this…

What we're going to tell you today — well, it's a bit controversial…

And maybe we shouldn't be sharing this with you…

But you see, anyone who's in on this wealth-generating technique, can effectively start with just Rs 2,000…

And ultimately secure one's financial future — forever.

Here are the details.

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Similarly, if you rely only on fixed income instruments such as Public Provident Fund (PPF) and other Small Savings Schemes (SSS), you may fall short of retirement savings, as these funds don't generate high inflation-adjusted returns.

In other words, unless you invest in risky assets such as Equities and may be even Real Estate prudently, you are unlikely to beat the inflation bug and create an adequate pool of assets for your retired life.

This is not to say, fixed-income instruments don't have any role in your retirement plan.

In fact, you should create a personalised asset allocation and invest accordingly for all your financial goals, including retirement.

Buying real estate isn't an easy choice as it requires a big-ticket investment. Nevertheless, you can invest as low as Rs 1,000 per month in mutual funds through Systematic Investment Plan (SIP) route to take exposure to equity; but you must begin early!

When you invest in equity through mutual funds, you enjoy a whole host of benefits such as diversification, economies of scale, and professional management to name a few.

Investing in mutual funds through SIPs can make your dream of living a blissful retired life come true.

But, here, the key is the selection of mutual funds schemes.

How do you select a mutual fund scheme?


While you can pick them yourself, given the time constraints and lack of interest and (possibly) expertise, it's wise to rely on professional advice.

Wondering whom to believe in this opportunistic financial services market?

PersonalFN has a dependable track record and has guided investors achieve their envisioned financial goals. The recommendations are unbiased and research-backed.

So, what's made this possible?

PersonalFN does not take short cuts with its research before recommending mutual fund schemes to investors. A comprehensive rating methodology is followed.

PersonalFN analyses thousands of data points to shortlist schemes and also applies a whole host of quantitative and qualitative parameters to select winning mutual fund schemes for your portfolio.

PersonalFN's Mutual Fund Research service 'FundSelect' Vs. S&P BSE 200

And read this too...

Out of every 4 funds recommended in the FundSelect-a premium mutual fund research service, 3 have always outperformed BSE 200 index. That's the success rate of PersonalFN.

Want to try PersonalFN's Premium Mutual Fund Research service 'FundSelect'?

Currently 'FundSelect' is celebrating 15 years of wealth creation. If you subscribe now you can avail this premium mutual fund research service for just Rs 2,950 and get 1 year additional access (worth rs 5,000)... virtually free!

It will provide Buy, Hold and Sell recommendations... intended at solidifying your mutual fund portfolio and make it free from any bias.

Click here to know more and subscribe to 'FundSelect' today!

What's more?

You will get FREE access to our premium report, 'Top-5 Funds For 2020

So, hurry and subscribe to PersonalFN's FundSelect NOW!

At PersonalFN, we put the investor's, in this case your interest before our own; and recommend Direct Plans to invest in mutual funds, and follow high fiduciary standards.

Also read: How To Switch From Mutual Fund Regular Plans To Direct Plans

Happy Investing!

This article first appeared on PersonalFN here.

PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.

Disclaimer:

The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

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