What is asset allocation?
- Technique of allocating money across asset classes
Recommendation
- At least 60% of their investable amount in equity
- 20% in precious metals
- 20% in fixed-income investments
- The percentage mix changes based on risk profile and age
How much should be the debt allocation
- Debt allocation should be equal to your age
- Example: If your age is 30, no more than 30% of your portfolio is in debt products
- The rest can be equity