How to do planned asset allocation in mutual fund?

Suppose a person aged 35 years with monthly savings of Rs 10,000 wants to invest in mutual funds. How should he proceed? He needs to purchase a flat in 5 years (Rs 25L), needs to raise one kid, help complete his education and prepare for retirement at the same time. How can he achieve all these aims by suitably planning asset allocation?

3 Replies to “How to do planned asset allocation in mutual fund?”

  1. Financial Planning is different from asset allocation in mutual fund.

    For asset allocation in mutual fund:
    Decide equity:debt ratio.
    Various equity segments: diversified, index, large/mid/small cap, sector etc.
    Various debt segments: MIP, income, long term etc.

    Choose good AMCs and plans. Then invest.


  2. Planned asset allocation in mutual fund is a function of overall financial planning exercise. While allocating money through indirect route (Mutual Funds) in capital markets you must take into account host of factors such as risk appetite, age, dependent family member, investment objectives etc. You benefit by investing in equity mutual fund if your investment horizon is long-term. For the kind of answer you are looking out for you need to consult expert financial planners, who provides Financial Planning services like PersonalFN

  3. I will suggest the following:

    – start SIP in diversified equity fund @ Rs 2,500 /month
    – start SIP in debt linked mutual fund @ Rs 2,500/ month
    – Invest Rs 2,500/ month in ETF funds
    – start SIP in sector linked mutual fund @ Rs 2,500/ month

Leave a Reply

Your email address will not be published. Required fields are marked *

5 − 2 =