Personal finance this week: Investing strategies for equity and debt funds – Money Perception

After a stellar rise to its all-time highs, the capital market has retraced a bit. However, most experts feel that the Indian stock market is the midst of a long bull run and will once again resume its upward move.

In such a situation, if you are a mutual fund investor looking to capture the market trend to make gains through equity funds, you must be wondering what your investment strategy should be. Should you invest in funds through a systematic investment plan (SIP) or lump-sum?

Most advisors suggest SIP is the best way to approach the market since it helps you to average out the purchase price of the units over a period of time. However, this may not be true in all market conditions, especially when the stock market is moving up on a sustained basis. Read our story to know the conditions under which lump-sum investing may work better than SIP

If you are a risk-averse mutual fund investor looking to park your money in debt funds for gain to avoid stock market volatility, there are many options. However, choosing a debt fund can also be tricky and would depend on various factors including your risk-profile, your financial goals and time horizon. To know how to choose the best debt fund to your advantage, read this column for a detailed understanding of how to go about it.

Your investment needs alter drastically as you approach retirement with your time horizon getting reduced and your risk appetite shrinking. So as your retirement approaches, how do you allocate your money among various assets to generate a decent return and maintain a healthy lifestyle?

Financial planners suggest that one needs to be careful with risks as one approaches retirement or is retired. So, cutting down on direct exposure to equity and raising debt investment for regular income is one of the main pillars of a good asset mix. “As a thumb rule, retirees should have an asset allocation which is based on their needs and not age,” says Amar Pandit, Founder & Chief Happyness Officer at HappynessFactory.in.

Know all about how your portfolio should be structured as your golden year nears in this story.

On the homebuyers’ front, attempts have been made to assuage homebuyers who are struggling after Jaypee Infratech was declared insolvent recently. The National Company Law Tribunal (NCLT) appointed an Interim Resolution Professional (IRP) for the company in the form of Anuj Jain, who during the week clarified that the company will obtain homebuyers’ claims from the firm’s records and verify the amounts with them if they fail to submit the claim forms by August 24 deadline. Read all about it here.

However, the bad news is that things could get worse on the real estate front for homebuyers. With the Real Estate (Regulation and Development) Act 2016 (RERA) tightening the noose around the developer community, some of them may have found liquidation proceedings or the bankruptcy law as an avenue to escape the ambit of the state regulator, say legal experts.  In this story, we give you an update on what is likely to come in the future, though we sincerely hope homebuyers who have put in their hard-earned money into purchasing their dream homes do get possession in time.

[“Source-moneycontrol”]