How Debt Funds Benefit Retirees

Fixed-income mutual funds play a crucial role in retirement planning by providing a relatively stable and predictable source of income. They can be an important component of a diversified investment portfolio, especially for retirees who want to minimise risk and preserve capital while generating returns. Here are some key roles debt funds play to achieve retirement planning goal. Asset Allocation Effective asset allocation involves investing across asset classes like equities, fixed income, and possibly real estate. This diversification helps in reducing the impact of market volatility on overall returns. Besides, it helps align one’s risk tolerance with financial objectives, whether it is growth, income, or a blend of both. Asset allocation allows retirees to plan for the long term, as their financial needs and risk tolerance changes with time. Proper allocation provides...