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What should be the asset allocation for a seven-year time frame?

When investing for a goal with a seven-year horizon, here is the asset allocation and withdrawal plan you should use

I am investing with a horizon of seven years. What should be the asset allocation and how frequently do I need to change it or when should it be changed?
- Pradeep Sonavani

You don't need to change your asset allocation. Invest about 65-75 per cent in equity and about 35 per cent in debt. This will be good enough for seven years. I think it's important for you to invest in one or two balanced funds so that you don't have to worry about rebalancing or changing allocation yourself. Also, if it is a non-negotiable goal for which you will definitely need the money after seven years, then the most important thing would be to continue this investment for five years and start withdrawing through a systematic withdrawal plan. Thereafter, put that money in a conservative fixed-income fund in the last two years before you need the money so that you are not dependent on the market as and when you need the money.

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