By: savinghabit

savinghabit
Mon, 31 Dec 2018 05:27:10 +0000

In reply to Bijoy C.

Hello Bijoy,

Over simplified answer is minus 100 from your current age and that number should be the maximum % you should have in equity at any point.
More detailed answer is:
1. You have to first lay out all your financial goals- small, medium and long term
2. Pick a financial product based on your requirement, risk appetite, goal timeline. It could and should be mix of debt and equity instruments.
For eg: if you need money for your goal in 2 years you can only invest in debt instruments and not equity.
If you goal horizon is 10-15 years then you can invest heavily in equity, but keep in mind that few years before the goal you need to divert money from equity to debt instruments to make sure you have money when you need it.
3. After following step 1&2 you derive at your debt/equity asset allocation

Still there are many other things you must consider that we can not cover here. We are launching a Investment 101 course in next two months. If you want we will intimate you personally when the course is open for enrolments.

We are not financial advisors and we do not discuss individual financial products on our blog because we are not well informed about them.

How to invest in mutual fund? we will try and cover that in our investment 101 course. This space is not enough to cover all aspects of it and we do not want to pass you half information.