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Ramalingam Kalirajan |8093 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 20, 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 V on May 08, 2024Hindi

Iam 57 years old male. Iam going to retire after 3 yrs. I have invested 2. 5 lakhs in icici balance advantage fund . Can i contine investing or change can you advice

Ans: Evaluating Investment Strategy for Retirement
Understanding Your Current Situation
It's commendable that you're actively planning for your retirement. Let's assess your investment in ICICI Balance Advantage Fund and explore whether it aligns with your retirement goals.

Genuine Appreciation for Retirement Planning
Planning for retirement demonstrates foresight and responsibility towards securing your financial future. It's a crucial step towards achieving financial independence in your golden years.

Assessing Your Investment Choice
ICICI Balance Advantage Fund:
This fund follows a dynamic asset allocation strategy, aiming to balance risk and return by adjusting exposure to equities based on market conditions.
It offers the potential for growth while providing downside protection through tactical allocation.
Evaluating Investment Strategy for Retirement
Investment Horizon:

With retirement on the horizon in three years, your investment horizon is relatively short.
Short-term investment goals typically require a more conservative approach to minimize the impact of market volatility.
Risk Tolerance:

As you approach retirement, preserving capital becomes increasingly important.
Consider reassessing your risk tolerance and shifting towards more stable investment options to safeguard your savings.
Considering Alternatives
Debt Funds:

Debt funds offer lower volatility and can provide steady income, making them suitable for retirement portfolios.
Consider allocating a portion of your portfolio to debt funds to enhance stability and reduce overall risk.
Systematic Withdrawal Plan (SWP):

SWP allows you to systematically withdraw a fixed amount from your investments at regular intervals, providing a steady income stream during retirement.
Explore the possibility of implementing an SWP strategy to meet your income needs post-retirement.
Conclusion and Recommendation
Given your proximity to retirement, it's prudent to reassess your investment strategy and prioritize capital preservation. While ICICI Balance Advantage Fund offers growth potential, it may carry higher risk, which might not align with your current financial objectives.

Considering your retirement timeline, I recommend exploring more conservative options such as debt funds and implementing a systematic withdrawal plan to ensure a steady income stream post-retirement. Consult with a Certified Financial Planner to tailor an investment strategy that suits your retirement goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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