Portfolio plan for 30 to 35 with 0 dependents
|Options||Equity||Bonds/Debentures||Mutual Funds||Liquid Cash||Real Estate||Gold||Insurance||Tax saving|
Equity: Growth stocks –70, Value stocks – 20, Defensive stocks – 10
Mutual Funds: Growth Fund - 75 Income Fund – 25
Equity should be given the maximum weightage (45%) in your portfolio as you can afford to take risks. The investment in equity is divided among:Growth stocks: 70% Value stocks: 20% Defensive stocks: 10%
Investing 14%in mutual funds (75% in growth funds and 25% in income funds) will enable you to own equity and reduce your risk. Investments in bonds and debentures (11%) will provide security to a portion of your savings. As your income increases, investing in insurance (5%) and tax saving instruments (6%) can maximize the post-tax returns Cash can be maintained at a level of 8%. Investment in real estate is suggested at 5%.
The starting point for Portfolio Planning is here.