Ideal Portfolio: Asset Allocation : Madurai Money - Madurai Finance

I have been analyzing on the ideal portfolio and here is what I found:

# You need to plan for the days when you may have a family. Hopefully, you have already made your investment in a property. Keep no more than 50% of your money in property.

# You don’t need to have more than 5% of your money in savings accounts.

# Keep a decent amount of money (30%) in equity - you should not need that money in a hurry so you are unlikely to be a distress seller of shares. Equities as an investment may be good long-term investments but they can have one or two bad years and, if you need the money urgently, you may be selling into a distressed stock market.

# Keep some money (10%) in debentures and bonds. The interest from the money invested in fixed income instruments may be given to your parents or brothers and sisters in case they are financially dependent on you.

# And keep some (5%) in gold too. Gold is an international asset priced in US Dollars and sometimes acts as a hedge against loss of wealth due to a weak Indian Rupee.

This portfolio success would differ from person to person.