Your Asset Allocation Strategy : Make It Count
Making an asset allocation strategy and planning investments that is best suited for as you move ahead in your life could help you in realizing your financial and life-stage goals. Plan for your retirement from an early stage, the longer you invest, the better your chances of ending with an adequate and healthy retirement corpus even after meeting your all liabilities.
Young and Free - For unmarried individuals upto 25 years of age it is the best time in life to try and maximize your investments in equity to benefit from compounding in the long run..
Key Goals
Suggested asset allocation
Just Married – For married individuals between 25 to 30 years of age, enjoy life and hence keep a little more sum in cash/liquid fund so you can meet emergencies without derailing your other financial goals.
Key Goals
Suggested Asset Allocation
Happy Family – For individuals between 30 to 40 years of age with family with one or two kids, it’s important to explore and enjoy the parenting but continue to maintain your investments to secure a bright future for the family. Continue maintaining your emergency fund but may plan to shift few percentage towards debt ie; Bonds/ FDs.
Key Goals
Suggested Asset allocation
Mature family – Future Sense
For individuals between 40 to 50 years of age with teenage kids, to meet your immediate and near term goals related to child’s higher education and marriage you could gradually move money to debt and liquid funds.
Key Goals
Suggested Asset allocation
Sunshine Years/ Ageing Gracefully – For individuals between 50 to 60 years of age. Reducing equity investment in a tax efficient manner and increasing allocation to debt and liquid funds could bring predictability to your investments.
Key Goals
Suggested Allocation
Happy Investing
Making an asset allocation strategy and planning investments that is best suited for as you move ahead in your life could help you in realizing your financial and life-stage goals. Plan for your retirement from an early stage, the longer you invest, the better your chances of ending with an adequate and healthy retirement corpus even after meeting your all liabilities.
Young and Free - For unmarried individuals upto 25 years of age it is the best time in life to try and maximize your investments in equity to benefit from compounding in the long run..
Key Goals
- To Build a fund to meet emergencies.
- To Become financially independent.
- Planning for retirement.
Suggested asset allocation
- Diversified Equity funds – 80%
- Bonds / FDs – 10%
- Cash/Liquid fund – 10%
Just Married – For married individuals between 25 to 30 years of age, enjoy life and hence keep a little more sum in cash/liquid fund so you can meet emergencies without derailing your other financial goals.
Key Goals
- Saving for house.
- Planning for child.
- Planning for retirement.
Suggested Asset Allocation
- Diversified Equity Funds – 75 %
- Bonds/ FDs – 10%
- Cash/Luquid fund – 15%
Happy Family – For individuals between 30 to 40 years of age with family with one or two kids, it’s important to explore and enjoy the parenting but continue to maintain your investments to secure a bright future for the family. Continue maintaining your emergency fund but may plan to shift few percentage towards debt ie; Bonds/ FDs.
Key Goals
- Child’s schooling and higher education
- Saving for Retirement
Suggested Asset allocation
- Diversified Equity fund – 65%
- Bond/ FDs – 20%
- Cash/ Liquid fund – 15%
Mature family – Future Sense
For individuals between 40 to 50 years of age with teenage kids, to meet your immediate and near term goals related to child’s higher education and marriage you could gradually move money to debt and liquid funds.
Key Goals
- Child’s marriage.
- A second home for retirement.
- Saving for retirement.
Suggested Asset allocation
- Diversified equity fund – 50%
- Bond funds / FDs – 25%
- Cash/ Liquid fund – 25%
Sunshine Years/ Ageing Gracefully – For individuals between 50 to 60 years of age. Reducing equity investment in a tax efficient manner and increasing allocation to debt and liquid funds could bring predictability to your investments.
Key Goals
- Steady income stream in retirement.
- Money to travel and pursue hobbies.
Suggested Allocation
- Diversified Equity fund -30%
- Bonds/ Fds – 40%
- Cash/ Liquid Funds – 30%
Happy Investing
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