Jiraaf's Saurav Ghosh discusses customising portfolios using bonds for passive income
The investor highlighted the importance of using bonds to manage short-term goals and provide regular cash flow alongside long-term equity growth.
Speaking in an Economic Times podcast, Jiraaf's Saurav Ghosh explained how incorporating bonds into a portfolio can provide liquidity and regular cash flow. Ghosh noted that while equity is used for building long-term wealth, bonds can help address personal financial needs and short-term goals.
Ghosh shared that his interest in bonds grew after experiencing unforeseen bulky expenses that forced him to either stop investing or withdraw from existing investments. He stated that bonds offered the flexibility to generate monthly income or regular cash flow beyond a regular salary.
The investor described his personal philosophy as customising a portfolio to meet various timelines rather than following a one-size-fits-all approach. He uses a strategy where different parts of a portfolio are allocated to specific goals, such as buying a house in three years or building a retirement corpus.
Ghosh divides his portfolio into three distinct categories: growth, income, and liquidity. The growth category is for long-term wealth over ten or twenty years, while the income category focuses on money maturing in one or two years to meet medium-term needs.
The income category acts as a supplement to salary or passive income to meet expenses or for reinvestment. The third category, liquidity, involves keeping money in a savings account for emergencies or immediate use.