Asset allocation through life

As you progress through life, your financial goals and needs will naturally evolve. The investment strategy that worked in your 20s might not be appropriate as you near retirement. Adjusting your asset allocation - the mix of investments in your portfolio - is essential for long-term financial success. Here's how your strategy should change from early career to retirement. Twenties to early thirties: Embrace risk With retirement far off, you can take on more risk for potentially higher returns. Your portfolio may lean towards equity. You might consider a mix of large-cap and mid-cap funds. While large-cap funds invest in the top 100 stocks, mid-cap funds invest in the next 150 stocks, as classified by AMFI based on market capitalisation. It is preferable to opt for the SIP (systematic investment plan) route wherein you can start with an amount that fits your budget but be sure to