THE CASE:
What will happen if my goal maturity time meets a market crash and all my long term investment with negative return e.g if goal is marriage or higher education of children or retirement.
THE SOLUTION:
If you are invested in equity oriented investments for your long term goals, an ideal approach would be to systematically move from equities to conservative instruments like short term or low duration high credit quality debt funds, PSU/ other financially sound Bank’s FDs, etc. when you are 2-3 years away from your goal. If retirement is the goal, then design a portfolio with bucket strategy to fund the retirement years.
Disclaimer: The above may not be the only solution and there could be multiple solutions for the same case. This is only a case study and should not be construed as any kind of advice. Personal and financial situations differ for each individual. Please consult a qualified licensed professional advisor before taking any action.
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