Samvat 2080 has begun a portfolio mix for any investor is the key to making the maximum from their investments. As the market folklore rightly suggests that one should not put all their eggs in one basket, a prudent investor should have a sound mix of equity, debt, and gold to make maximum in the long run and tackle the economic volatility.
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However, the portfolio mix varies from investor to investor depending on their age, time horizon and investment goals. The majority of market experts suggest investors to go big on equity space, allocating more than half to up 80 per cent of funds to equity space. However, some suggest going for bonds considering the rising yield in the time in the current times:
Nikhil Kapoor, Senior VP-Research at JM Financial Services
Asset allocation strategy will vary from person to person depending on their age, risk profile, cash flows and requirement of capital at various stages in life. We are inherently a growth biased investor and hence would split capital into 65 per cent in equity, 20 per cent in debt and 15 per cent in Gold. One could consider hybrid funds as well as an alternative.
Shrey Jain, Founder & CEO, SAS Online
Investors should decide their asset allocation based on their financial goals and their risk profile and rebalance it from time to time. Never chase any asset class looking at past performance. I would like to allocate 70 per cent funds to equity, 25 per cent to debt and five per cent gold.
Equity will be large-cap dominated. Debt will be equally divided between short duration, say one to three years, and 10 year Government Securities. Gold exposure will be achieved through units of gold ETF.
Tanvi Kanchan, Head - Corporate Strategy at Anand Rathi Shares and Stock Brokers
We believe that asset allocation is the most important component of long-term wealth creation, accounting for nearly 90 per cent of portfolio return. Market timing and the selection of specific instruments within an asset class explain only about 10 per cent of portfolio return variability. A broader allocation of 60 per cent in equity, 30-35 per cent in debt and the rest 5-10 per cent in Gold can be looked at on a longer tenor perspective.
Anshul Arzare, Joint MD & CEO at YES Securities INDIA
Good diversification with good growth opportunities, steady returns and as a hedge against inflation. An investor can allocate up to 70 per cent in equity, and divide the remaining 30 per cent equally in debt and gold with 15 per cent allocation in each of the asset classes.
Arpit Jain, Joint Managing Director at Arihant Capital Market
The allocation of Rs 10 lakh among equity, debt, and gold depends on the investor's risk tolerance and goals. For a 40-year-old, a balanced mix could be 65 per cent in equity for growth, 25 per cent in debt for stability, and 10 per cent in gold for diversification. This allocation seeks to optimise returns while managing risk based on the individual's risk-taking ability and investment horizon.
Satish Menon, Executive Director at Geojit Financial Services
We believe that India is in good ground to invest in multi assets like Equity, Bonds, and Gold. This is because these are 0n a safe horizon to generate decent returns by diversifying and reducing risk. The Indian economy is stable and has the ability to grow on reform-based and domestic demand. Valuation is neither expensive nor cheap.
We need to be stock-specific in equity with a focus on heavy weights, while debt is also generating a decent yield of 7-10 per cent, depending on the paper quality. Gold also has a positive view due to rupee depreciation, a slowdown in the global economy, and high geopolitical tension. We suggest 40 per cent in equity, 40 per cent in debt, and 20 per cent in gold for an average risk-averse investor.
Santosh Pandey, President & Head, Nuvama Professional Clients Group
From a long-term perspective of three years, for an equity-savvy person, I would invest 80 per cent in equity while the rest would be divided equally amongst gold and debt.