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Ramalingam Kalirajan |10881 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 21, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Question by Ch on May 20, 2024Hindi

Sir, I'm 50yrs old. I earn rs 60p.m. kindly suggest low risk mutual fund so that I can get pension from ,60 yrs to 70 yrs.

Ans: Building a Low-Risk Mutual Fund Strategy for Your Retirement Pension
It's wise to plan ahead for your retirement years, and mutual funds can play a crucial role in generating a steady income stream. Let's explore a low-risk mutual fund strategy tailored to your needs.

Understanding Your Retirement Needs
Income Requirement
With a monthly income target of Rs 60,000 during your retirement years from 60 to 70, ensuring a stable and reliable income source is essential.

Risk Preference
Considering your preference for low-risk investments, prioritizing capital preservation while generating consistent returns is paramount.

Low-Risk Mutual Fund Selection Criteria
Stability
Focus on mutual funds with a history of stable performance and lower volatility, minimizing the risk of significant fluctuations in your investment value.

Consistent Returns
Prioritize funds with a track record of delivering steady returns over the long term, aligning with your goal of sustaining a reliable pension income.

Diversification
Opt for mutual funds that offer diversification across asset classes, such as a balanced mix of equity and debt securities, to mitigate risk effectively.

Recommended Mutual Fund Categories
Debt Mutual Funds
Allocate a substantial portion of your investment towards debt mutual funds, which primarily invest in fixed-income securities, providing stable returns with relatively lower risk.

Conservative Hybrid Funds
Consider conservative hybrid funds, which maintain a conservative allocation to equities while predominantly investing in debt instruments, striking a balance between growth and stability.

Short-Term Debt Funds
Explore short-term debt funds, which invest in fixed-income securities with shorter maturity periods, offering stability and liquidity while minimizing interest rate risk.

Retirement Income Strategy
Systematic Withdrawal Plan (SWP)
Implement a systematic withdrawal plan (SWP) from your selected mutual funds, allowing you to receive a regular income stream while keeping your principal amount invested.

Regular Portfolio Review
Periodically review your mutual fund portfolio to ensure it continues to meet your income requirements and risk tolerance, making adjustments as needed.

Final Thoughts
Professional Guidance
Consider consulting with a Certified Financial Planner to tailor your mutual fund strategy according to your retirement goals and risk profile, ensuring a secure financial future.

By strategically allocating your investments across low-risk mutual fund categories, you can build a retirement portfolio designed to provide a steady pension income during your golden years.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.