Practically, you would need to think about your short term and medium term goals as well.
15–20 years is a long term and for this period you will be investing in a long term portfolio consisting mostly equity mutual funds. Equity fluctuates in the short term and eventually grows in the long term. Hence, if you need the money back for some purpose in short term, long term investments done in mutual funds might not be the best option to take out the money from.
But, if you are sure that your short and medium term needs will be taken care through some other source, you are good to go with investing all your savings in a long term portfolio provided you are doing it under an expert’s guidance. It’s not just about investing onetime and forgetting it, your portfolio has to be constantly monitored and re-balanced as and when the market and your risk appetite changes.
Typically, people do not put all their money for long term as they do have short and medium term goals. Its best to get in touch with a Financial Planner who can help you figure out what’s best for you.
Originally published on Quora.