Asset allocation, however, does not have a one-size-fits-all solution, and what may be beneficial for one person may not be suitable for another. The choice of mutual funds MF) scheme can be based on one’s risk profile or age. Let’s see how investors can make optimum use of MF schemes at different stages of life and achieve their goals.
The 20s investor
It’s simpler to make long-term financial commitments while you’re just getting started since you have less financial obligations and are in a position to take calculated risks with your investments. The ability to make course adjustments midway through without having a significant impact on your portfolio is another benefit of starting young.
Therefore, if you are an aggressive investor, your fund portfolio should have a high percentage of equity funds—around 80%. Even if you area conservative investor, a 60% allocation to equity funds is a smart option.
This story is from the May 2023 edition of Investors India.
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This story is from the May 2023 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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