Obnews Desk: Dhanteras, while traditionally associated with buying gold and silver for prosperity, is now also seen as an opportunity to invest in one's financial future. As finances evolve, Indians are elevating the festival spirit to wise, long-term investments linked to life goals. Investment decisions depend on age, financial responsibilities and risk appetite. Here's a guide to investing at different stages of life and how WealthBasket – a select basket of stocks and ETFs – can help you make smart, diversified choices this Dhanteras.
1. Early career (age 20 to 30): good growth and learning
For young professionals between the ages of 20 and 30, time is their greatest asset. With fewer financial responsibilities, you can take more risks for greater returns. Focus on building better wealth by taking advantage of the equity markets and gaining investing experience. Invest in stocks, equity mutual funds and high growth ETFs as part of the investment strategy. If you are not sure where to start, setting up a SIP for mutual funds will help you benefit from rupee-cost averaging and build discipline. WealthBasket offers a select growth-focused stock basket for young and first-time investors, helping even beginning investors diversify their investments without the need for in-depth market research.
2. Mid-career (30s to 40s): Balancing growth and stability
As your career progresses, financial responsibilities increase – buying a home, saving for children's education or planning for retirement. It is important to strike a balance between growth and stability and diversify to reduce risk and aim for better returns. Consider a mix of equity and debt instruments as part of your investment strategy, according to Share.Market Research. While equities should still play an important role in your portfolio, adding bonds or fixed deposits provides stability. Create separate investment plans for specific goals, such as your child's education or a down payment for a home. For mid-career investors, WealthBasket offers several good WealthBaskets with ETF mixes to suit your risk tolerance across different asset classes.
3. Retirement earlier (50s to early 60s): wealth preservation and risk management
As retirement approaches, wealth preservation becomes important. Focus on low-risk, income-producing assets while increasing your savings to cope with inflation. Stability is essential in this stage. As an investment strategy, allocate a large portion of your portfolio to dividend-yielding stocks, bonds and fixed income investments that will provide regular income and reduce risk. Reduce your investments in high-risk assets, but don't eliminate equities completely. A little investment in low-volatility blue-chip stocks will help protect your portfolio from inflation. For greater long-term stability, choose a wealthbasket with a higher bond ETF allocation to reduce volatility. Equity ETFs and gold promote diversification, creating a balanced, low-risk portfolio – which also makes you mentally stronger at the time of retirement.
4. Retirement (60 years and above): Income generation and wealth preservation
In retirement, your focus turns to generating steady income and preserving wealth. Risk management is important to maintain your lifestyle without unnecessary financial risk. As an investment strategy, invest in dividend yielding stocks, government bonds and fixed deposits that provide regular income sources. Keep investments in equities low and instead focus on low-risk, stable investments. Structure your portfolio in a way that facilitates regular withdrawals and ensures that your money lasts till your retirement. By selecting a diversified, asset-allocation wealthbasket, retirees can achieve stable returns without the need for constant market monitoring.
–with agency input
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