What should be your asset allocation according to your age?

There is no ‘one size fits all’ rule, but by and large, it should vary depending on your age, risk profile and goal horizons. Here we consider two types of asset allocations.

One is as per the ‘100-age’ rule, which is a moderate approach, while the other is for those who can take higher risk.

Average mode follows ‘100-age’ formula for equity investment. Aggressive mode: This is for those who can take a slightly higher risk.

• At 20 years

Average Mode
Equity: 80%
Real estate 0%
Cash 5%
Debt 15%

Aggressive mode
Equity: 90%
Debt 5%
Cash 5%
Real estate 0%

Also Read: How much is too much to invest in any asset class?

• At 30 years

Average Mode
Equity: 70%
Real estate 0%
Cash 5%
Debt 25%

Aggressive mode
Equity: 80%
Debt 15%
Cash 5%
Real estate 0%

• At 40 years

Average Mode
Equity: 60%
Real estate 10%
Cash 5%
Debt 25%

Also Read: How to determine your portfolio asset allocation

Aggressive mode
Equity: 70%
Debt 15%
Cash 5%
Real estate 10%

• At 50 years

Average Mode
Equity: 50%
Real estate 18%
Cash 2%
Debt 30%

Aggressive mode
Equity: 60%
Debt: 20%
Cash 2%
Real estate 18%

• At 60 years

Average Mode
Equity: 40%
Real estate 18%
Cash 2%
Debt 40%

Aggressive mode
Equity: 50%
Debt 30%
Cash 2%
Real estate 18%