I am aged 72 years and totally retired since 2019. Despite limited income, I am investing Rs12,000 per month in mutual fund mostly in equity segment of reputed AMCs initially for a period of 3 years and may extend later.
Kindly suggest whether this is a right decision or needs a review.
Ans: Investing in mutual funds, especially in equity segments, can be a smart move for building wealth over time. Given your retired status and limited income, it's commendable that you're still prioritizing investments. However, at 72, it's crucial to balance potential returns with risk.
It's wonderful to see your proactive approach towards securing your financial future even during retirement. Mutual funds offer diversification, which can help manage risk, and investing systematically, like you're doing, can potentially yield better returns over the long term.
Nevertheless, it's essential to consider your risk tolerance and investment horizon. Equity mutual funds can be volatile in the short term, so ensure you're comfortable with fluctuations in the value of your investments.
Regular reviews with a Certified Financial Planner (CFP) can provide valuable insights into whether your investment strategy aligns with your goals and risk profile. A CFP can help adjust your portfolio as needed and provide peace of mind knowing that your investments are on track.
Remember, investing is a journey, and it's normal to reassess and make changes along the way. Keep monitoring your investments regularly and stay informed about market trends and economic developments.
In summary, while investing in mutual funds can be a good decision, especially for long-term wealth creation, consider consulting with a CFP to ensure it's the right approach for you given your age and financial situation.
Best Regards,
K.Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
