Asset allocation for Single ►►► Age between 25-40 years

Typically you are at the stage of building wealth with no immediate family to support. So you may be willing to take high risk. Your portfolio should be as follows :

► You may have already started acquiring your own real estate so keep on contributing 40% of your investment in property. If you feel this is bit high you can switch some portions to equity too.

► Keep a good amount of money nearly 40% in equity. Hoping you do have a professional stock broker to maintain your capital.

► And keep around 10% in bullion. We will have a detail discussion on bullion later on.

► You don’t need to have more than 5% of your money in savings accounts.

► Keep around 5% fixed income instruments like debentures and bonds.

Asset allocation for a Single ►►► Age < 25 years

Typically you are a person with no liability. So you can afford to take high risk.

Your portfolio should be as follows :

► Keep a significant portion of your savings, around 45%, in equities. This is bit risky, but looking at your age, it's somewhat feasible.

► You should start investing in a real estate. Nearly 40% of your savings should be for the purpose of buying the real estate. You should always consult an expert real estate broker for this.

► You don’t need to have more than 5% of your money in savings accounts. If you need to keep something for any emergency purpose you can think of keeping aside some more percentage.

► You may also keep some money in fixed income instruments, may be to the extent of 5%. Say in Post Office or Bank fixed deposits.

► And keep some nearly 5% in bullion. We will have a detail discussion on bullion later on.

Asset Allocation : Some basic things

Each one of you must remember that investing is a continuous process, based on certain scientific methods, which would enrich the quality of your lifestyle and help you in achieving your personal goals and aspirations. Designing of portfolio for most of the individuals is a lifetime activity and not an ad-hoc process. You should ensure that you are taking a right decision to invest your heard earned funds in safe place.


First of all, before investing you should have an adequate knowledge of financial market and the various options available for investment then, then only you can plan you portfolio. Your investment strategy should be such that it fulfills your real life need like purchasing a house, receiving regular income, children education & marriage and future financial security.


The whole article is somewhat bigger and I need some more posts to cover every approaches of allocation for different age groups. In a nutshell, we would throw some light, on how you should allocate your savings at different stages in your life to gain maximum advantage. However, the asset allocation depends upon various other factors also, so you should also consider those factors before finally putting your money.


Just see the table below and find out the category in which you fall. [In the table, column depicts the age and rows show the status in which the person falls presently.] You may go to cell number in which you fall and find out what should be your asset allocation. Just click on the category number on the cell and you will be navigated to the corresponding post.

Status / Age	< 25 years	25-40 years	40 – 60 years	> 60 years
Single	I	II	-	-
Married with no kid	III	IV	V	-
Married with kid	VI	VII	VIII	IX

In the next posts we will suggest you an appropriate asset allocation depending upon the category in which you fall.