Portfolio plan for 46 to 58 with more than 4 dependents
|Options||Equity||Bonds/Debentures||Mutual Funds||Liquid Cash||Real Estate||Gold||Insurance||Tax saving|
Equity: Growth stocks – 40 , Value stocks – 35 , Defensive stocks – 25
Mutual Funds: Growth fund - 50 Income fund – 50
At your age you need to decrease investments in equity (27%). The suggested split is: Growth stocks: 40% Value stocks: 35% Defensive stocks: 25%
Investing 20% of your savings in bonds and debentures will provide fixed income to meet your expenditure.An investment of 11% in mutual funds (50% in growth funds and 50% in income funds). will ensure returns and security.15% of your savings may be held in cash to meet health and other related expenses. An optimum proportion (5%) should be invested in gold and real estate.Investments in tax saving instruments and insurance should each be limited to 5% of your savings.
The starting point for Portfolio Planning is here.