Model Portfolios for Investors
Return is always associated with risk. Risk appetites vary from investor to investor, according to their personal status (age, nature of job, income etc.), family status (number of earning members, dependent members etc.). These factors vary to every investor. Therefore, any model portfolio can't fit for any investor, but one can adopt these model portfolios with some minor changes according to their risk appetites and need. As we are seeing here that investor's risk appetites vary, and any single portfolio model can't be suggested to all. Here some model portfolios and asset allocation mix that is most appropriate for different risk appetite levels are given below :
| Type of Investor | Asset Allocation |
|---|---|
| Young employee with no dependents | 50% diversified equity schemes (preferably through SIP); 20% sector funds; 10% gold ETF, 10% diversified debt fund, 10% liquid schemes. |
| Young married single income family with two kids | 35% diversified equity schemes; 10% sector funds; 15% gold ETF, 30% diversified debt fund, 10% liquid schemes. |
| Single income family with school/college children | 35% diversified equity schemes; 15% gold ETF, 15% gilt fund, 15% diversified debt fund, 20% liquid schemes. |
| Retired couple, with no immediate family support | 15% diversified equity index scheme; 10% gold ETF, 30% gilt fund, 30% diversified debt fund, 15% liquid schemes. |