1. When in your 30s, the rule of thumb is to stick to an asset allocation plan that addresses your risk comfort.
2. Aim for a good mix of growth and debt instruments.
3. Allocate 75% to equities and 25% to debt for creating your investment corpus.
4. Allocation in mutual funds is preferable than purchasing direct stocks.
5. Comprise your Equity funds with large cap allocation up to 35% in large-cap and multi-cap growth funds, while small cap allocation can be up to 65% in small-cap and mid-cap growth funds.
6. Debt allocation can be 5-6 months expenses in sweep-in bank deposits linked with your savings account, while the balance could be in a dynamic bond fund (or a ladder of short-term debt funds).
7. SIPs up to 20% of your pre-tax monthly income should be your mode of investment.
8. Preferably, select a separate mutual fund for each of your short-, medium-, and long-term goals.
9. Short-term goals include buying furniture or a new car.
10. Medium-term goals include buying your own home and your kid’s education.
11. Long-term goals include retirement planning and taking care of aged parents.
12. Get an online term insurance covering 8-10 years annual income to secure your family in case you are not around.
13. Buy a comprehensive medical cover by opting for a family floater plan.
14. Use tax-saving ELSS funds for initiating the process of building retirement corpus.
15. If you must borrow, do so for buying things with long-term value such as child’s education and a home of your own.
2. Aim for a good mix of growth and debt instruments.
3. Allocate 75% to equities and 25% to debt for creating your investment corpus.
4. Allocation in mutual funds is preferable than purchasing direct stocks.
5. Comprise your Equity funds with large cap allocation up to 35% in large-cap and multi-cap growth funds, while small cap allocation can be up to 65% in small-cap and mid-cap growth funds.
6. Debt allocation can be 5-6 months expenses in sweep-in bank deposits linked with your savings account, while the balance could be in a dynamic bond fund (or a ladder of short-term debt funds).
7. SIPs up to 20% of your pre-tax monthly income should be your mode of investment.
8. Preferably, select a separate mutual fund for each of your short-, medium-, and long-term goals.
9. Short-term goals include buying furniture or a new car.
10. Medium-term goals include buying your own home and your kid’s education.
11. Long-term goals include retirement planning and taking care of aged parents.
12. Get an online term insurance covering 8-10 years annual income to secure your family in case you are not around.
13. Buy a comprehensive medical cover by opting for a family floater plan.
14. Use tax-saving ELSS funds for initiating the process of building retirement corpus.
15. If you must borrow, do so for buying things with long-term value such as child’s education and a home of your own.