Portfolio plan for 36 to 45 with 1 to 2 dependents
|Options||Equity||Bonds/Debentures||Mutual Funds||Liquid Cash||Real Estate||Gold||Insurance||Tax saving|
Equity: Growth stocks – 50 , Value stocks – 35 , Defensive stocks – 15
Mutual Funds: Growth fund - 60 Income fund – 40
To meet your increasing expenditure such as children’s education, you must plan to augment your stable income. You may invest 40% of your savings in equity in the following proportion:Growth stocks: 50% Value stocks: 35% Defensive stocks: 15%
Mutual funds are the next best option as they provide returns at moderate risk. An investment of 12% in mutual funds, divided among growth funds (60%) and income funds (40%) is suggested. Holdings in savings account may be limited to 11%. 5 % of your savings can be invested each in gold and real estate. As you find your income rising, you can optimize post-tax returns by investing in insurance (5%) and other tax saving instruments (7%).
The starting point for Portfolio Planning is here.