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How to split your investments between Equity, Debt, and Gold — for Indian investors at every life stage.
Long time horizon means you can ride out market volatility. Maximise equity for compounding. Debt is just for liquidity/emergency.
Sovereign Gold Bonds (SGBs) or Gold ETF. Not physical gold.
EMIs, family costs, and goals closer on the horizon. Shift a little toward debt for stability while keeping equity dominant.
SGBs for 8-year locks. Earns 2.5% interest + price appreciation.
Retirement is 15–20 years away. Goals like children's education are now near-term. Reduce volatility exposure gradually.
Maintain SGB or Gold ETF position. Don't add more unless rebalancing.
Capital preservation matters more. Equity still needed to beat inflation in retirement. Shift debt heavy with some gold as hedge.
Higher gold at 10% as currency hedge and wealth preservation.
A starting point only — equity % ≈ 100 − your age. Adjust for risk appetite and income stability.
When equity runs up, book some profits and rebalance back to your target. Keep portfolio honest.
6 months of expenses in a liquid fund. This is separate from your asset allocation calculation.
Your home is a lifestyle asset, not an investment. Don't count it as debt or equity exposure.
NPS Tier 1 equity allocation (up to 75%) counts toward your equity %. Don't forget it.
EPF contributions count as debt allocation. High earners often have more debt than they realise.
This is an educational framework, not personalised financial advice. Asset allocation depends on your risk tolerance, income stability, existing corpus, and specific goals. Consult a SEBI-registered financial advisor for a tailored plan.
Before investing, make sure you have 6 months of expenses in a liquid fund.