Age, many believe, is crucial to investing. Logically, the younger you are, the greater must be the equity exposure. One’s goals,investment horizon and risk tolerance should also be the determining factors. So there is no blanket rule.
Given here are five different portfolios targeted at various profiles. Check to see which one suits you most. Consider these as guidelines to help fine tune your portfolio.
AGGRESSIVE GROWTH
This portfolio is meant for you:
- If wealth creation is your agenda
- If young and starting a career
The riskiest portfolio of all, it has the capability to generate high returns. Your aim must be to build wealth. Age is on your side and you have almostzero financial liabilities - no dependents or loans to serve. Money saved in these years of your life will contribute the most to your overall wealth.
| Funds | Classification | Portfolio Weight (%) |
| Fidelity Equity-G | Large-& Mid-Cap | 25 |
| HDFC Equity-G | Multi-Cap | 25 |
| DSPBR Micro Cap Reg-G | Mid-& Small-Cap | 15 |
| AIG World Gold-G | International | 10 |
| BSL Dynamic Bond Ret-G | Income | 10 |
| IDFC Premier Equity Plan A-G | Mid-& Small-Cap | 15 |
GROWTH
This portfolio is meant for you if you:
- Want to diversify your assets and already have an investment base
- Are fairly young or just married with certain goals to achieve
- Are shifting from double income to a sole bread winner situation
Draw time frames for your goals and work towards them. A strong equity allocation will get you there. While you are earning pretty well, there would be an increase in your financial liabilities. So while an aggressive portfolio may not be the need of the hour, you still need growth.
| Funds | Classification | Portfolio Weight (%) |
| Fidelity Equity | Large-& Mid-Cap | 20.03 |
| HDFC Top 200 | Large -& Mid-Cap | 20.22 |
| ICICI Pru Dynamic | Multi-Cap | 20.22 |
| Reliance Equity Opportunities | Multi-Cap | 19.83 |
| BNP Paribas Bond Reg | Income | 19.70 |
STABLE GROWTH
This portfolio is meant for you if you are:
- Making a career shift or opting for an early retirement
- Faced with a change in family circumstances (divorce, birth of a child, sudden death). You need not be in a particular age group or in a specific phase of your life to sport such a portfolio. Fine tune your portfolio and meticulously plan your investments to adjust to the new dynamics.
| Funds | Classification | Portfolio Weight (%) |
| BSL 95-G | Equity-oriented | 24.85 |
| FT India Dynamic PE Ratio FoF | Asset Allocation | 25.07 |
| HDFC Balanced | Equity-oriented | 25.29 |
| Reliance Reg Savings Balanced | Equity-oriented | 24.79 |
CONSERVATIVE
This portfolio is meant for you if you:
- Pay a high marginal tax and want to decrease your tax burden
- Want to maximise your wealth, with an eye on retirement
The goal is income protection and safeguarding of assets. We would offer it to someone who is at ease with their financials, but who has to play cautious too. To give a more practical image, it could be that your children are now self-sufficient, which means that you have less dependents. Alternatively, you could be young but servicing a fair amount of debt or have many dependents.
| Funds | Classification | Portfolio Weight (%) |
| FT India Dynamic PE Ratio FoF | Asset Allocation | 40.13 |
| HDFC MIP Long-term | Debt-oriented Conservative | 29.95 |
| Reliance MIP | Debt-oriented Conservative | 29.91 |
INCOME & GROWTH
This portfolio is meant for you if you are:
- Retired
- Less than a year away from retiring
The goal here is to make all your savings and investments work towards giving you a comfortable life.
Normally, people tend to get apprehensive at this point of their lives. Yet, it could turn out to be the most financially rewarding phase. The person could be at the peak of his career and the children would most probably be financially independent by now. Retired investors have a number of issues to look out for; protect their accumulated wealth, minimise the tax implications of their retirement income and get the most out of their accumulated wealth.
| Funds | Classification | Portfolio Weight (%) |
| HDFC MIP Long-term | Debt-oriented Conservative | 24.83 |
| Reliance MIP | Debt-oriented Conservative | 24.65 |
| FT India Dynamic PE Ratio FoF | Asset Allocation | 25.15 |
| UTI Balanced | Equity-oriented | 25.37 |
