Portfolio plan for 36 to 45 with 3 to 4 dependents
|Options||Equity||Bonds/Debentures||Mutual Funds||Liquid Cash||Real Estate||Gold||Insurance||Tax saving|
Equity: Growth stocks – 45 , Value stocks – 40 , Defensive stocks – 15
Mutual Funds: Growth fund - 60 Income fund – 40
In order to meet rising expenses such as children’s education, you must concentrate on getting stable income. You may invest 35% in equity in the following proportion:Growth stocks: 45% Value stocks: 40% Defensive stocks: 15%
Investing 15% of your savings in bonds and debentures provides both stable returns and security to your money. Mutual funds offer good returns at moderate risk. An investment of 15% in mutual funds (60% in growth funds and 40% in income funds) is suggested. Liquidity can be maintained at 11%. 5% of your portfolio can be held each in real estate and gold. Investing in insurance (10%) and tax saving instruments (7%) can help you tackle increasing tax burden.
The starting point for Portfolio Planning is here.