1. Linking debt-equity allocation with actual total investment corpus would help you in finding a suitable solution.
2. As a senior citizen / retiree, corpus should ideally be 20 times current annual expenses.
3. Within this emphasized corpus, equity allocation should be capped at 75%, even with an aggressive portfolio, i.e.15 years expenses.
3. Hence, debt fund portfolio would become 25%, i.e. 5 years expenses.
4. However, if equity portfolio also has balanced funds of, say around 40%, then 3 years expenses in pure debt funds may also suffice.
5. Asset allocation would need reworking, based on actual expense-corpus ratio, besides periodic rebalancing of both asset classes as per changes in risk profile.
2. As a senior citizen / retiree, corpus should ideally be 20 times current annual expenses.
3. Within this emphasized corpus, equity allocation should be capped at 75%, even with an aggressive portfolio, i.e.15 years expenses.
3. Hence, debt fund portfolio would become 25%, i.e. 5 years expenses.
4. However, if equity portfolio also has balanced funds of, say around 40%, then 3 years expenses in pure debt funds may also suffice.
5. Asset allocation would need reworking, based on actual expense-corpus ratio, besides periodic rebalancing of both asset classes as per changes in risk profile.