Investors who are recently retired often worry about inflation eating away the value of their mutual fund investments in the long run. With interest rates decreasing, fetching the same interest income is becoming difficult for senior citizens. Also, an increase in life expectancy has made things worse. Therefore, investing in mutual funds online is essential so one’s corpus is not depleted quickly. Experts suggest investing in mutual funds with a mix of equity, debt, and gold fund to earn better returns.


Have you ever wondered how safe it is to invest in equity mutual funds post-retirement? Before looking at mutual funds, investors must understand how much risk they will take to earn that extra return. Risk and recovery go hand in hand. If you are yearning for higher returns, you must be willing to take higher risks and be comfortable with experiencing volatility in the portfolio.

The risk in mutual funds is a significant factor that investors are concerned about. However, exposure to equities is also required. It is a myth that senior citizens should invest just in safe investment havens. It is crucial to take future requirements into account as well. Investment baskets for long-term needs must comprise wisely picked investment products, including equity mutual funds.

For long-term investments, an investor may need to alter the asset mix and allocate a specific percentage to equity-oriented mutual fund schemes depending on their risk profile and financial goals. To further decrease the risk, an investor should diversify the investment across dynamic asset allocation funds and large-cap mutual funds. They may also consider allocating their funds to established multi-cap mutual funds. Senior citizens must avoid high-risk mutual funds such as sectoral and thematic or mutual funds that invest largely in mid-cap and small-cap funds.

Factors to consider

Remember, the capital lost during retirement will be a total loss without new earnings. So, make sure you invest in mutual funds, keeping your regular income and risk profile in mind. Experts caution that the safety of the principal is important. To attain a higher yield, one should not put one investment corpus at risk. Another aspect to consider is liquidity. Investment products with a long lock-in period or difficult exit attributes must be avoided.

Considering factors such as liquidity, taxation, safety, and returns is essential. Factors to be considered before investing in any investment avenue usually remain the same, irrespective of investment options. An investor must look at the safety of the principal, tax efficiency, good liquidity, and reasonable returns. Happy investing!