Saving money is a crucial aspect of every individual’s life, with a special emphasis on planning for the future, particularly during retirement. Initiating this process early and making well-thought-out plans contribute to a comfortable retirement. The benefits of starting to invest and save money early are substantial, even amid various responsibilities and ongoing loan repayments. Investment advisor Balwant Jain highlights the challenges many individuals face in planning for retirement, often reaching the age of 50 with looming expenses and responsibilities. For those finding themselves in such a position, Jain offers valuable investment strategies.
Jain emphasises that, before delving into investments, individuals should ensure their liabilities are minimised, and they are prepared to assume some level of risk. Advising on investment choices, he recommends options that yield higher returns, particularly for those at the age of 50, when income typically peaks, and liabilities are on the decline.
For individuals in this stage of life who are willing and capable of taking risks, Jain advocates a focus on equity-based investments. He specifically suggests allocating a portion of investments to international equity funds and gold. However, Jain underscores the importance of committing to these investments for at least ten years to reap substantial returns, averaging around 10 to 12 per cent.
In cases where investors are above 50, risk-averse, and have short-term goals, Jain recommends investing in the large-cap segment. He advises allocating 50 per cent of funds to large-cap funds, with a further breakdown of 40 per cent in multi-cap funds and 10 per cent in mid and small-cap funds. Additionally, investors in this category may consider traditional investment avenues such as short-term Fixed Deposits (FDs) and post office schemes.
Balwant Jain’s expert guidance underscores the significance of tailoring investment strategies to individual circumstances, risk tolerance, and financial goals. Whether opting for higher-risk equity investments or more conservative approaches, the key is aligning the investment plan with the unique financial profile and objectives of each investor.
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