Portfolio plan for 46 to 58 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– 35 , Defensive stocks – 20
Mutual Funds: Growth fund - 60 Income fund – 40
You need to channel your investments to provide fixed income to meet increased expenses. Investment in equity may be limited 32% of your savings. The suggested equity mix is: Growth stocks: 45% Value stocks: 35% Defensive stocks: 20%
Holding 15% of your portfolio in bonds and debentures will ensure a fixed stream of income. 11% may be invested in mutual funds (60% in growth funds and 40% in income funds). 15% of your savings should be held in savings account to meet any emergencies. In order to maximize post-tax returns investing in insurance (10%) and other tax saving instruments (7%) is essential. Holdings in gold and real estate may be maintained at the level of 5% each.
The starting point for Portfolio Planning is here.