Mutual Fund Investing Essentials For the 50+| North Loop Official Blog
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North Loop
28 Oct 2020

Mutual Fund Investing Essentials For the 50+

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Introduction -

Creating a successful investment strategy requires meticulous planning and discipline. It also requires a detailed analysis of the effect of different financial moves on long and short term financial goals. As most experts say, the start to a well-crafted financial plan is to create the perfect financial picture. While most also suggest that it is best to start financial planning as early as possible, the truth is that financial and investment planning can begin at any age. However, a critical point that often gets skipped is the fact that even though an investing strategy is vital and can get started at any age, the same one cannot get used for all stages of life. A lot depends on the financial goals and requirements. In this article, let us look at the factors that you must consider when creating a mutual fund investing strategy at the age of 50:

Determine risk profile - For selecting the best mutual funds at age 50, it is crucial to determine your risk profile. Doing so can help you in figuring out the optimal level of risk you can take at this age and your willingness to take it. Different investment options have varying risks, and analyzing your tolerance level can help you choose the one that best fits your profile and goals.

Keep yourself updated - If you want to begin investing in the best mutual funds at age 50, it is necessary to familiarise yourself with mutual fund jargons and concepts. Educating yourself before starting your investment journey is an essential precursor as it can help you choose the right funds according to your immediate financial needs and also future requirements. However, even if you possess little knowledge about mutual fund concepts, it should not deter you from starting your investing journey. Digital investment service providers like North Loop not only offer an easy-to-use investing platform but also help of professional mutual fund advisors to guide you with the process. You also get personalized recommendations of mutual funds based on your risk profile and financial goals. Therefore, the lack of complete mastery on the subject should not become a roadblock and lead to further delays in your investing journey.

Asset allocation - You can create an asset allocation strategy at any age based on your risk and return profile. A perfect allocation mix can help you meet your goals and also tide over your current expenses. It can also help in determining the percentage of different assets that you should invest in based on your requirements. That includes debt instruments, equity investments and other investment options. Since mutual funds offer a wide-ranging spectrum of investment options with varying risk/return levels, it gets easy to figure out the best mutual funds for 50-year-olds. They also provide diversified portfolios that can weather market volatility and help you earn decent returns as well as meet your financial goals. However, it is imperative to keep in mind that an ideal asset allocation mix varies with every individual. Therefore, if you are looking for the best mutual funds for 50-year-olds, you should keep your profile in mind and create a portfolio mix that aligns with your preferences and needs. A sample asset allocation mix suggested by experts for this age is as follows -

Stocks: 50% to 60%
Bonds: 40% to 50%

Conclusion -

Several mutual fund specialists suggest that as you move closer to retirement, it becomes essential to switch to safer and more stable investment options and create a portfolio that is adaptable to market volatility in terms of risk and return. This age is also the time to form the right asset allocation strategy that allows better enjoyment of capital appreciation of your investments. Getting professional advice for investing in the best mutual funds is also a good step towards feeling secure about your investments. Since you may have more money to use now but not enough willingness to take risks and recover from losses, following all of the above steps can help you plan strategically and efficiently. Aside from these, the most valuable thing to keep in mind is that age is just a number, and a robust financial plan can help you reach your aspirations and goals, irrespective of when you begin.

If you want to start investing from the comfort of your home, you can do so via North Loop. We offer a digital investing platform, 24*7 customer services, personalized fund recommendations based on your goals as well as the help of professional mutual fund advisors to make your investing journey a seamless one.

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.