Mutual Funds in Your Portfolio?

Why should you invest into Mutual Funds?

People seems to forget the basics once the markets started going up & up.

Irrespective of market movements, Mutual Funds help you remain in same risk class. This is important in your journey through Balyam, Kaumaram, Youvanam, Vardhakyam and Vanaprastahm. can you identify a product that will help you continuously invest for more than 15 years in the same account? With same risk level? At your leisure?

Imagine a 35 year old invested into Mastershare-1986 in the year 1986. By September 2010, he has made compounded annual rate of return appx 18%. Now having completed 24 years in the scheme and approaching his retirement now, he needs to review his holdings.

He needs to take stock of his income and expenses. He needs to look at his assets and liabilities. And take a decision whether he should remain further in the Mastershare -86, an equity scheme. If his profile permit, he can. Otherwise he needs to re-structure his portfolio to include MIPs from PO, Bank Fd, Company FD, MIPs from Mutual Funds etc.. Remember all these long 24 years, the Mastershare allowed him to remain in same risk level....that is the beauty added by such long term products; that is why you should look at your savings routes.

Simultaneously he should look at tax reduction, liquidity and health needs so that Vardhakyam is happily spent.

Setting up charity for furthering his wishes could be thought of at this stage. One should also have Estate planning, if not done.

Happy investing..