Building a mutual fund portfolio is not just about selecting funds that have delivered strong returns. As investors approach retirement, the focus needs to shift towards managing risk, ensuring liquidity and aligning investments with near-, medium- and long-term financial needs. Having too many schemes can also make portfolio management difficult, particularly when several funds have overlapping mandates.
For a 60-year-old investor, the need for a well-defined asset allocation becomes even more important. The portfolio should ideally provide enough liquidity to meet immediate expenses while retaining adequate equity exposure to support long-term growth and counter inflation.
