The Bucket Strategy: Your Retirement Cashflow Plan

Retirement is a time to enjoy the fruits of your hard work. But to live comfortably and worry-free, you need to ensure a steady cashflow that help support your lifestyle, health care expenses and aspirations. One practical way to do that is the Bucket Strategy – a simple yet effective method of segmenting your investments based on your time horizon and risk appetite.

• Bucket 1: Emergencies (0-1 Year)

This is your safety net. You can park funds here for emergencies like hospital bills, unexpected expenses, etc. This bucket should be liquid, accessible and less risky.

Some of the Investment options include: Liquid Fund, Low Duration Fund, Money Market Fund, Ultra Short Term Fund.

>>> Consider keeping at least 6-12 months of your monthly expenses here

• Bucket 2: Short-Term Growth (1-5 Years)

This bucket helps in taking care of your near-term goals or predictable expenses like travel, home repairs, gifting, or topping up your income.

Some of the Investment options include: Short Term Debt Fund, Corporate Bond Fund, Equity Savings Fund.

>>> Think of it as your income top-up bucket

• Bucket 3: Intermediate Growth (5-10 Years)

This bucket is for medium-term growth. It takes a blended approach – a mix of equity and debt. It’s meant to grow steadily, so you can refill your first two buckets when needed.

Some of the Investment options include: Aggressive Hybrid Fund, Balanced Advantage Fund, Multi-Asset Fund, Asset Allocator Fund of Fund.

>>> Let this bucket breathe – Consider withdrawing from this bucket only in case of emergencies

• Bucket 4: Long-Term Growth (10+ Years)

This is your future focused bucket – meant for legacy planning or for expenses far down the road. It involves equity investments which aims to grow your wealth over time.

Some of the Investment options include: Flexi Cap Fund, Large Cap Fund, Multi Cap Fund.

>>> If market falls, don’t flinch. This bucket has time on its side

Why this works for Retirement?

• No panic selling – Your Immediate needs are covered, so you don’t withdraw long term investments during market volatility
• Flexibility – Adjust allocations as your goals change (e.g. shift more to bucket 1 as you age)
• Growth + Stability – Short-term buckets helps in providing stability while long-term buckets could grow your wealth overtime

As your life changes, your buckets can be adjusted. You might move funds from one bucket to another as you get older or your goals shift. The key is balance and flexibility – You’re in control with the freedom to ensure your money works for you, not the other way around.

So, grab your buckets, fill them wisely and enjoy the freedom that comes with knowing your financial future could be solidly prepared, secured and ready for whatever comes next!

Note: The information herein is for general purposes only. The recipient(s) should before taking any decision, make their own investigation and seek appropriate professional advice

MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.