Portfolio plan for over 58 with more than 4 dependents
|Options||Equity||Bonds/Debentures||Mutual Funds||Liquid Cash||Real Estate||Gold||Insurance||Tax saving|
Equity: Growth stocks – 35 , Value stocks – 40 , Defensive stocks – 25
Mutual Funds: Growth Fund - 30 Income Fund – 70
Bonds and debentures should form the major portion of your portfolio (25%), as they provide regular income and security. Investment in equity must be restricted to 19% considering that you cannot afford to bear high risk. The suggested equity mix is:Growth stocks: 35% Value stocks: 40% Defensive stocks: 25%
11% of the savings should be invested in mutual funds (30% in growth funds and 70% in income funds). 20% of your investible surplus should be in liquid form in order to meet expenses related to health and other emergencies. Investment in insurance can be limited to 10%. Hold 5% of your savings in gold, which is an international asset. 5% investment, each in real estate and tax saving instruments is suggested
The starting point for Portfolio Planning is here.