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Why is it advisable to have a significant amount of a retirement portfolio invested in equity?

Why is it advisable to have a significant amount of a retirement portfolio invested in equity?

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Answer #1

A significant part of retirement portfolio should be invested in equity because equity has the potential to get higher return. Also other investments rarely beat inflation hence real returns are less. However real returns in equity are very high even after factoring in inflation. By putting significant amount of money in a basket of different stock and help diversify and minimize risks without compromising on returns.

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