BOOM

Trending Searches

    SUPPORT
    BOOM

    Trending News

      • Fact Check 
        • Fast Check
        • Politics
        • Business
        • Entertainment
        • Social
        • Sports
        • World
      • Law
      • Explainers
      • News 
        • All News
      • Decode 
        • Impact
        • Scamcheck
        • Life
        • Voices
      • Media Buddhi 
        • Digital Buddhi
        • Senior Citizens
        • Videos
      • Web Stories
      • BOOM Research
      • BOOM Labs
      • Deepfake Tracker
      • Videos 
        • Facts Neeti
      • Home-icon
        Home
      • About Us-icon
        About Us
      • Authors-icon
        Authors
      • Team-icon
        Team
      • Careers-icon
        Careers
      • Internship-icon
        Internship
      • Contact Us-icon
        Contact Us
      • Methodology-icon
        Methodology
      • Correction Policy-icon
        Correction Policy
      • Non-Partnership Policy-icon
        Non-Partnership Policy
      • Cookie Policy-icon
        Cookie Policy
      • Grievance Redressal-icon
        Grievance Redressal
      • Republishing Guidelines-icon
        Republishing Guidelines
      • Fact Check-icon
        Fact Check
        Fast Check
        Politics
        Business
        Entertainment
        Social
        Sports
        World
      • Law-icon
        Law
      • Explainers-icon
        Explainers
      • News-icon
        News
        All News
      • Decode-icon
        Decode
        Impact
        Scamcheck
        Life
        Voices
      • Media Buddhi-icon
        Media Buddhi
        Digital Buddhi
        Senior Citizens
        Videos
      • Web Stories-icon
        Web Stories
      • BOOM Research-icon
        BOOM Research
      • BOOM Labs-icon
        BOOM Labs
      • Deepfake Tracker-icon
        Deepfake Tracker
      • Videos-icon
        Videos
        Facts Neeti
      Trending Tags
      TRENDING
      • #Operation Sindoor
      • #Pahalgam Terror Attack
      • #Narendra Modi
      • #Rahul Gandhi
      • #Waqf Amendment Bill
      • #Arvind Kejriwal
      • #Deepfake
      • #Artificial Intelligence
      • Home
      • Business
      • How To Invest When You Reach Your...
      Business

      How To Invest When You Reach Your Mid-Forties

      Read why and how you should shift towards low risk investment in your mid-forties.

      By - A Staff Writer |
      Published -  16 Jan 2017 6:03 PM IST
    • Boomlive

      How To Invest When You Reach Your Mid-Forties

      It has become quite common for people in their forties to suddenly stop what they have been doing and ask themselves deep questions about life and its meaning. Now, while we don’t recommend a bout of a mid-life crisis, it is a good time to step back and take a good look at your investments. Regardless of how well your portfolio is performing, it is important that you slowly shift gears to create a new investment strategy.

      This article will help you to smoothly carry out this transition

      • Debt or equity

      Equity is one of the best investment avenues that offers great returns and beats inflation consistently. However, it carries a large amount of risk. As the market can be quite unpredictable and volatile, there is a greater chance of losing money. On the other hand, debt investments are less risky and offer assured returns.

      As an investor nearing retirement, it is safer to consider debt instruments to avoid the risk of big losses. This doesn’t mean that you shift all your investments from equities to debt. Simply reduce the ratio of equity holdings in your portfolio.

      • What about market cap?

      The next thing you need to check is market capitalization. Is your portfolio invested heavily in mid-cap and small-cap funds? If the answer is yes, it indicates that you have a large risk appetite as an investor. Nothing wrong with that since small-cap funds generally hold the potential to become big and offer gigantic returns. But it might be time to bet on a different horse.

      Large-cap funds might not provide the same excitement but they give sure and steady returns. Invest in large blue-chip companies to decrease chances of volatile shifts in price movements.

      • Jettison the junk

      As a young investor, it is alright to experiment and take risks. After all, you have a lot of time to cover up any losses that could occur along the way. But now that you have reached a certain age, it is best not to indulge in too many unconventional choices. In addition, you will be better off by getting rid of those under-performers lying around in your portfolio. Don’t look only at profits; instead, compare them with peers and other benchmarks. No point holding onto those funds if they have not been doing well.

      • Goal oriented investment

      If your age is nearing the half-century mark, it is necessary that you list out your goals and start working towards fulfilling them. For instance, you need to amass a good lump sum if you have to provide a college education to your child. For this, you could consider booking your profits from equities and investing the same in safer instruments like debt funds or fixed deposits.

      • Tax saving instruments

      You could also consider investing a portion of your fund in tax-saving instruments too. Equity Linked Savings Schemes (ELSS) is a good option in this regard. In addition, it is worth looking into other safe options like Public Provident Fund (PPF), government bonds and fixed deposits to secure your retirement.

      Conclusion

      Heraclitus, the great Greek philosopher said, “Change is the only constant in life.” So as you grow older, it is only natural for your portfolio to change and evolve. As you approach your retirement, it is necessary that your investments reflect your lifestyle and future goals.

      Tags

      DebtEquityfixed depositgovernment bondsinvestInvestmentinvestorLifestylemarket capmid-capmod-fortiesportfolioPPFProfitRetirementreturnsRisksaving schemessmall-capvolatile
      Read Full Article
      Next Story
      Our website is made possible by displaying online advertisements to our visitors.
      Please consider supporting us by disabling your ad blocker. Please reload after ad blocker is disabled.
      X

      Subscribe to BOOM Newsletters

      👉 No spam, no paywall — but verified insights.

      Please enter a Email Address
      Subscribe for free!

      Stay Ahead of Misinformation!

      Please enter a Email Address
      Subscribe Now🛡️ 100% Privacy Protected | No Spam, Just Facts
      By subscribing, you agree with the Terms & conditions and Privacy Policy connected to the offer

      Thank you for subscribing!

      You’re now part of the BOOM community.

      Or, Subscribe to receive latest news via email
      Subscribed Successfully...
      Copy HTMLHTML is copied!
      There's no data to copy!