Portfolio Vs Age – Portfolio and Age Relationship

by Santosh Das | Last Updated On September 27, 2022

Portfolio Vs Age – How to Manage Investment Portfolio Age Wise.

Portfolio Vs Age – Understand Investment Portfolio and Age Relationship and How to Manage Investment Portfolio Age Wise.

Portfolio Vs Age Relationship

The age of a person determines what would be the best investment portfolio for his or her future. Whether to for more equity investment and less in fixed income or less in equities and more in fixed income depends on the age of the person. As a simple rule, the less the age the more risk a person can take because he or she has more years to earn money.

The more the age, the less risk a person must take. So, portfolio management depends on age and risk profile.

However, one must remember that fixed income cannot compete with ever-rising inflation. It is Best Investment Options for High Return like equities that can compete with the increasing inflation and hence everyone must have some equity in his or her portfolio.

Also it is important to have a Diversified Portfolio and diversify fixed income investment to different tools like government bonds, fixed deposits and debentures etc.

Learn:

Age Wise Investment Portfolio

Age		Investment Portfolio
Above 60	:	» 40% in Stocks and Mutual Funds » 10% in Cash » 50% in Fixed Income
50 to 60	:	» 50% in Stocks and Mutual Funds » 10% in Cash » 40% in Fixed Income
40 to 50	:	» 60% in Stocks and Mutual Funds » 10% in Cash » 30% in Fixed Income
30 to 40	:	» 70% in Stocks and Mutual Funds » 10% in Cash » 20% in Fixed Income
Below 30	:	» 80% in Stocks and Mutual Funds » 10% in Cash » 10% in Fixed Income

FAQs: Diversified Portfolio

Is it Good to Have a Diversified Portfolio?

Yes, it is good to have a diversified portfolio as it helps to reduce the investments risks. With diversification, an investor adds different investments to his or her portfolio that acts as a shield against losses in case any investment or asset doesn't performs well.

How do you Diversify a Portfolio?

Do not put all your eggs in one basket, Simple! You must invest in different investment options, industries and market. In case of Equity Investment, diversify your investment across different stock market sectors.

What is a Well Diversified Portfolio?

A well diversified portfolio will have following features:

Variety of Securities;
Proper Balance of Equity and Debt;
A combination of Aggressive, Moderate and Conservative Investment.

What is an Example of Diversified Portfolio?

A well Diversified Portfolio will like:

Investment	%
Cash	20%
Stocks	15%
Mutual Funds	15%
Bonds	15%
Emerging Markets	10%
Commodities	10%
Real Estate	15%

Conclusion

The Less the Age, the More Risk you can take. The More the Age, the Less Risk you must take. Simple.

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