Asset Allocation Recommender
The right equity / debt / gold split for your age and risk tolerance. Most Indians are wildly under-allocated to equity. See where you should sit.
Your numbers
Conservative: can't stomach 20%+ drawdowns. Moderate: panicked but held in 2020. Aggressive: bought more in 2020.
Your result
For a 30-year-old moderate investor with ₹10 lakh to allocate: 70% in equity (₹7 lakh), 25% in debt (₹2.5 lakh), 5% in gold (₹50,000). Rebalance once a year to keep these ratios.
- Equity (70%)
- ₹7 lakh
- Debt (25%)
- ₹2.5 lakh
- Gold (5%)
- ₹50,000
paisaexpert.com
Not sure what this means?
Recommended next
Plan the equity SIP
Your equity bucket should be ₹7 lakh at the target allocation. Open the SIP calculator to see how monthly contributions get you there.
Open it
How the rule works
The classic "100 minus age" gives a starting equity percentage that decreases as you near retirement (because you have less time to recover from drawdowns). Modified for India: we cap at 95% equity for the youngest investors (a small debt cushion is psychologically valuable even when financially unnecessary) and floor at 20% equity even in retirement (because the corpus has to outlive you for 25+ years and pure debt loses to inflation).
Rebalancing the lazy way
Once a year, on your birthday or April 1, check current ratios. If equity is 5+ percentage points above target, redirect new investments to debt for 6 months. If equity is 5+ percentage points below target (post-crash), redirect new investments to equity for 6 months. Avoid selling to rebalance; redirecting flows is more tax-efficient and behaviourally easier.