I am investing in mutual funds to raise retirement fund. My portfolio is 25% debt and 75% equity currently. I have self occupied property.
Before few years of retirement, I will start to switch fund from equity to debt to achieve reverse share percentage as that of current. Hence, at some stage, my allocation will be 25% equity and 75% debt.
I am aggressively saving and investing in mutual funds. My property loan will close after two years; so, I will have additional saving due to no more loan installments. I am planning to divert the additional saving to mutual funds.
I have few amount in bank account and deposits; but this is just an emergency fund. I am not thinking this as retirement fund.
So, as you can see, my major investments are only in mutual funds (and self occupied property if it is considered an investment; not sure).
My concern here is that, mutual funds (debt and equity both) are subject to market risk. Is it safe to rely on mutual funds for raising retirement fund and after retirement financial planning?
If no, what change I should do?
I am 37 now and from India; just in case if it matters.