Portfolio plan for 46 to 58 with 0 dependents
|Options||Equity||Bonds/Debentures||Mutual Funds||Liquid Cash||Real Estate||Gold||Insurance||Tax saving|
Equity: Growth stocks – 60 , Value stocks – 30 , Defensive stocks – 10
Mutual Funds: Growth fund - 65 Income fund – 35
Despite entering the pre-retirement phase, you can still invest a major portion of your savings in equity (47%) as you have no dependants. The investment in equity is divided among :Growth stocks: 60% Value stocks: 30% Defensive stocks: 10%
Mutual funds are associated with moderate risk and high returns and hence 11% may be invested in them. This is further split between growth funds (65%) and income funds (35%).10% of the savings can be held in savings account to meet unplanned expenditure.As your income is rising, you need to maximize post-tax returns by investing in insurance (5%) and tax saving instruments (7%). Investing 5% each in gold and real estate is suggested.
The starting point for Portfolio Planning is here.