I have turned 50. I have been investing in equity mutual funds for various goals. At what age should I switch from equity to debt?
This is a critical question for which different people give different advice. The answer would also vary depending on the specific goal for which specific investments were made and the flexibility of the goal. For your child's education, you should start withdrawing from your investment at least one year before the goal date through a Systematic Transfer Plan (STP) over the next 12 months. For your retirement goal, shifting the entire corpus from equity to debt is not advised, as the goal is a continuing one and lasts for at least 20 years.
