1. “100 minus age” rule, or Equity Exposure Ratio (EER), is widely used for investment portfolio asset allocation, to maintain a suitable Equity corpus exposure at all times till retirement, for achieving long-term goals.
2. As per Sebi's categorization, the Equity funds are:-
a) 65% Equity Hybrids - Aggressive, Arbitrage, Equity savings,
b) 65% Equity Funds - Multicap, Midcap, Smallcap, Value, Contra, Focused, Dividend Yield,
c) 70% Equity Funds - Large & Midcap,
d) 80% Equity Funds - Largecap, Sectoral, Thematic, ELSS, Index, ETF.
3. Being unique categories, one's age, earning years left, and ability to invest in risky assets - which Equity funds are too - generally decide their selection.
4. However, the ability to take risks differs across individuals depending on their investment personalities and other unique factors.
2. As per Sebi's categorization, the Equity funds are:-
a) 65% Equity Hybrids - Aggressive, Arbitrage, Equity savings,
b) 65% Equity Funds - Multicap, Midcap, Smallcap, Value, Contra, Focused, Dividend Yield,
c) 70% Equity Funds - Large & Midcap,
d) 80% Equity Funds - Largecap, Sectoral, Thematic, ELSS, Index, ETF.
3. Being unique categories, one's age, earning years left, and ability to invest in risky assets - which Equity funds are too - generally decide their selection.
4. However, the ability to take risks differs across individuals depending on their investment personalities and other unique factors.