Portfolio plan for 30 to 35 with more than 4 dependents
|Options||Equity||Bonds/Debentures||Mutual Funds||Liquid Cash||Real Estate||Gold||Insurance||Tax saving|
Equity: Growth stocks –50, Value stocks –25, Defensive stocks –25
Mutual Funds: Growth Fund - 60 Income Fund - 40
Investing in a well-diversified portfolio will provide both security and returns to your savings. A 37% investment in equity at 37% would be ideal. The equity mix is:Growth stocks: 50% Value stocks: 25% Defensive stocks: 25%
Holding 15% of your portfolio in bonds and debentures provides stable returns and security. An investment of 11% in mutual funds in the proportion of 60% in growth funds and 40% in income funds is suggested.
10% of your savings may be held in cash. By investing 5% in real estate you can plan for a house. Investment in gold can be maintained at 5%. To maximize your post-tax returns you may invest in tax saving instruments (7%) and insurance (10%).
The starting point for Portfolio Planning is here.