Currently we are contributing INR 30,000 to Provident Fund (Current rate 8.5% guaranteed by Indian Govt , it has continued for last 6 years, always stays higher than market interset rates) and INR 25,000 into diversified Stocks (through 3 Mutual Funds) for our retirement folio. We have another INR 30,000 freeing up in 1 month, I'm not sure how should distribute this among 2 categories. Indian stock market return could be very high but volatility is extreme, here is some historical data (quarter wise for last 12 years) :
Q1Q2Q3Q4
20100.18 -- -- --
20090.18 48.99 18.34 1.90
2008-23.35 -13.63 -3.85 -25.89
2007-5.15 12.25 17.85 16.87
200620.15 -5.62 17.55 10.51
2005-1.52 11.46 20.16 8.50
2004-4.68 -13.62 17.08 17.64
2003-9.85 18.95 24.43 30.90
20026.01 -6.66 -6.82 13.27
2001-9.88 -3.35 -17.98 16.30
2000-0.07 -6.32 -14.59 -2.85
199922.03 11.72 16.78 2.26
1998-- -- -- --
If I put 30K in guaranteed returns would I be a chicken loosing on high returns (specially since I'll be cost averaging the money in) or if I tilt towards market would it be taking unnecessary risk ?
Our personal inflation rate is controlled at 5-6% and tentative retirement year is 2014-15.
I know it depends on personal risk tolerance but please do share ur thoughts.
Thanks a bunch,
DesiGirl
Q1Q2Q3Q4
If I put 30K in guaranteed returns would I be a chicken loosing on high returns (specially since I'll be cost averaging the money in) or if I tilt towards market would it be taking unnecessary risk ?
Our personal inflation rate is controlled at 5-6% and tentative retirement year is 2014-15.
I know it depends on personal risk tolerance but please do share ur thoughts.
Thanks a bunch,
DesiGirl