Building your mix
There's no perfect allocation, only one that fits your goals, your horizon and how you actually behave in a fall.
Rules of thumb
A classic starting point is “100 minus your age” in equity: 70% at 30, 50% at 50. It's crude but points the right way: more growth when you're young and have decades ahead, more stability as you approach the money's use.
- Equity70%
- Debt20%
- Gold10%
A textbook starting point for learning, not a recommendation.
Adjust for what matters
Adjust for horizon (money needed within three years shouldn't be in equity), income stability (a government job can support more equity than a volatile business), existing assets (EPF and PPF are already debt), and behaviour: if a 30% fall would make you sell, you hold too much equity, whatever the rule says.
Keep it simple
A sound portfolio can be three or four funds: a large-cap or index fund, a flexi-cap or mid-cap fund, a debt fund and a gold fund. More funds usually add overlap, not diversification.
Key takeaways
- 1Start from 100 minus age, then adjust.
- 2Count EPF, PPF and FDs as debt.
- 3Three or four funds are usually enough.
Try it with your own numbers
Finish this lesson
Reaching the end marks it complete. You can also mark it yourself.
Educational content, not investment advice. Figures are illustrative.