You should buy an investment product that suits your risk appetite, so you are told. This statement presupposes that you know your risk appetite, and that your risk appetite does not change with time, even if you invest in a product through a long-dated systematic investment plan (SIP). Suffice to know that determining your risk appetite is difficult because of behavioural reasons. Also, your risk appetite will change over time due to factors other than aging. Given that you need 8.5% post-tax returns, yielding to your perceived risk appetite means you will fail to achieve your goal.

Source: The Hindu May 31, 2020 17:01 UTC