Debt portfolio for your retirement planning

Updated on August 23, 2016 in Retirement
1 on August 11, 2016

I have a hypothetical question on Retirement : Suppose your Retirement is 10 years away and the Asset allocation of Debt:Equity ratio is 50:50. I am not considering Gold and House here as it is for personal consumption.The Equity portfolio is predominantly Mutual Funds (90%) and Direct Equity (10%) and the Debt portfolio comprises of mainly EPF, PPF (about 95%) and few corporate bonds. Suppose I want to add pure Debt funds also in my Debt portfolio, what kind of debt funds are suitable for a retirement which is 10 years away and post retirement? Or would it make sense to wait till retirement to invest in Debt funds? I am confused about the role of debt funds for retirement planning.

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0 on August 23, 2016

Well, the simplest answer would be, consider funds whose term matches your goal. In this case, since your goal is 10 years away, it is a tad difficult to zero in on category of funds. Why do you wish to invest in debt funds 10 years ahead? Why not consider balanced funds and move towards debt as you get closer to your goal?

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