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What should be the allocation for a portfolio worth Rs 7 lakh?

Dhirendra Kumar advises on the desired equity:debt allocation during the accumulation phase

My portfolio is currently 50:50 in equity and debt. The total size is Rs 7 lakh. What allocation would you suggest going ahead?
- Amardeep Babardesai

Allocation depends on a lot of things. In your accumulation phase, you should not have a 50:50 allocation. Instead, you should have 80 per cent in equity and 20 per cent in debt. As you are still in the accumulation phase, contributing regularly and many years away from needing your accumulation, you can take a risk and better withstand the equity market's volatility.

But if you have retired, then 50:50 allocation is fine. That will keep it simple and also present an opportunity to rebalance.

So the asset allocation depends on where you stand and how long you will invest.

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