1. The choice of fund type should always be need/ goal-specific, with just 1/2 funds in each type, and belonging to different AMCs, preferably from the top 5 funds with 5/10-year highest returns, so that there is least scope to churn them frequently.
2. Select 1/2 Balanced funds for your retirement corpus (aiming for 20-25 times your estimated annual retirement expenses), due to their inbuilt auto-balancing nature.
3. Select 1/2 multicap funds for your long-term goals (of 15+ years) to weather all market cycles.
4. Select 1/2 mid/smallcap funds for your medium-term goals (of 10+years) to take advantage of windfall gains in India's vibrant economy.
5. Select 1/2 ELSS (large cap) funds for your tax-planning goals for your earning years as they will have lesser fluctuations.
6. Maintain an emergency fund of 6 months current expenses in a liquid/ ultra- short-term debt fund/ bank flexi-deposit for contingency needs.
7. Stop any SIPs/STPs in the regular plans of your funds and start new SIPs/STPs in the direct plans of your selected funds (never more than 8).
8. Systematically redeem the units from all your existing regular plans in the most tax-efficient manner that is possible within the new LTCG rules.
9. Review and rebalance your direct funds periodically, even replace if needed during your long-term investment journey, without increasing the type and number of funds, neither on your own nor upon any advice.
10. Halve your number of funds while retiring, by retaining the balanced and multicap funds, and aim to annually withdraw 4-5% of your accumulated retirement corpus for meeting your annual expenses thereafter.
2. Select 1/2 Balanced funds for your retirement corpus (aiming for 20-25 times your estimated annual retirement expenses), due to their inbuilt auto-balancing nature.
3. Select 1/2 multicap funds for your long-term goals (of 15+ years) to weather all market cycles.
4. Select 1/2 mid/smallcap funds for your medium-term goals (of 10+years) to take advantage of windfall gains in India's vibrant economy.
5. Select 1/2 ELSS (large cap) funds for your tax-planning goals for your earning years as they will have lesser fluctuations.
6. Maintain an emergency fund of 6 months current expenses in a liquid/ ultra- short-term debt fund/ bank flexi-deposit for contingency needs.
7. Stop any SIPs/STPs in the regular plans of your funds and start new SIPs/STPs in the direct plans of your selected funds (never more than 8).
8. Systematically redeem the units from all your existing regular plans in the most tax-efficient manner that is possible within the new LTCG rules.
9. Review and rebalance your direct funds periodically, even replace if needed during your long-term investment journey, without increasing the type and number of funds, neither on your own nor upon any advice.
10. Halve your number of funds while retiring, by retaining the balanced and multicap funds, and aim to annually withdraw 4-5% of your accumulated retirement corpus for meeting your annual expenses thereafter.