Vishal Kapoor, CEO of Bandhan AMC, shared key insights on retirement planning during the second edition of Outlook Money’s 40After40 Retirement Expo in New Delhi. He highlighted the importance of equity in building a retirement corpus.
When it comes to retirement planning, he noted the importance of equity investments. “You cannot ignore equity, particularly if you’re looking at long-term returns,” he stated. While many investors rely on fixed-income options like fixed deposits, Kapoor believes they may not provide sufficient returns for long-term financial goals.
He clarified that equity is essential for accumulating wealth over time, especially through systematic investment plans (SIPs). "You must consider compounding," Kapoor continued, adding that when done consistently over a long period of time, SIPs may provide sizable returns.
Kapoor also highlighted the importance of taking calculated risks when it comes to retirement planning. “If it’s not beating inflation, the chances of your money running out are very high, unfortunately, which is why I say, the risk is good. Unless you don’t take the risk, you’re putting yourself at a much greater risk,” he said.
Also, Vishal focused on the advantages of Systematic Withdrawal Plans (SWPs) as a practical approach to handling retirement withdrawals. “SWPs can be a powerful tool because you can withdraw a fixed amount regularly, while your investment continues to grow,” he explained. This strategy helps retirees balance income generation with capital preservation. Kapoor’s session focused on the importance of creating a well-rounded retirement plan by integrating both secure and growth-oriented investments. He underlined the significance of financial discipline and the power of starting early, stating that consistency and a long-term perspective are crucial for building a sustainable retirement corpus. He highlighted strategies like SIPs and SWPs as ways to balance growth and stability, offering practical advice for those looking to secure financial independence in their retirement years.
