Asset Allocation Plan

By listening to famous investor’s commentary, Robin started started his investment journey in the early days of career. He invested in a real-estate asset which doubled his networth in 1 year. He gained confidence and started playing with his money in real-estate. At one point of time, he over leveraged himself and housing market crash occured at the same time in late 2000’s. He is in debt now, forget about creating wealth. Never invest all your eggs in one asset class. In hard times, your investments will become worthless due to ups & downs.

Percentage of allocation depends on various factors and varies from person to person according to thier needs & expertise !!

In General, If your portfolio size is very big, then you can pick high ticket asset class as well by parking some money in Real-Estate.

If you are young and getting some regular cashflows through job or business, one can consider equities as the primary option so that returns can be multifolded with good CAGR in a longer period of time which gives an option to create wealth. So, typically percentage of allocation can be, 60-70% in equities, 10-15% in debt, remaining 15-20% can be in Crypto, Gold & Global Markets. There is no hard & fast rule in this asset allocation percentages, everyone can tune thier numbers according to the risk appetite, personal conviction and future prospects.

If you are in mid 30’s or 40’s, your risk taking ability might not be high, one can increase thier debt allocation and can reduce others.

If you are 60 plus, mostly you would be investing for preparing your retirement fund or for beating inflation. Debt, Gold & any bluechip stocks which pays good dividends can be a better choice.

Take my advice with a pinch of salt, brainstorm yourself and know what your end goal is, based on that pick an asset class & allocation percentage which is inline with your goal post.