ASK OUR PLANNERand start a STP (Systematic
Transfer Plan) to an equity
oriented mutual fund. As even
ULIPs invest in market linked
securities, it makes sense not to
invest in one go. However
opting for monthly/half-yearly
premium mode can be a bit
expensive compared to annual
mode, on the mortality charges
front.
Other things kept aside, your
investment decisions must be
guided by your existing and
future financial responsibilities.
Your portfolio must have an
optimal balance between risky
assets (Equity) & stable assets
(Fixed Income), based on your
future needs. Before investing,
you should also ensure
whether the basics are in place
- having an adequate life
insurance / personal accident &
disability insurance / health
insurance and adequate
emergency corpus. A
cu s t o m i z e d a n d
comprehensive financial plan
will take into consideration your
overall needs, assess the
impact of your decisions on
your future cash flow & provide
optimal investment & insurance
recommendations. To know
more about this, you may write
to us at [email protected]Q. I am salaried and trading in the
market since 10-15 years. Having
asset allocated in equity stocks,
debt market, SIPs and retirement
schemes in 70%, 10%, 10% and
1 0%. Now that I am 6 months away
from getting retired. Do you think the
allocation should be re-arranged or
should I continue with the same
percentage?- Neha Jain
A. As you are nearing your
retirement, it is essential that
major part of your accumulated
corpus, if not all, is liquid
enough to meet your frequent
withdrawal requirements. It is
also important that a good part
of your portfolio is invested in
Fixed Income (Debt) asset class
to bring stability and ensure
near term withdrawals are met
without worries. As you have
not provided a breakup of your
debt mutual fund holdings,
existing SIPs & retirement
schemes, it is difficult to
ascertain the same. Going only
by the % allocation, it is highly
recommended that you reduce