What's the ideal asset allocation for a 35-year-old?

Aggressive: 70% equity, 20% debt, 10% gold. Moderate: 60% equity, 30% debt, 10% gold. Conservative: 50% equity, 40% debt, 10% gold. Adjust based on job stability, dependents, and risk comfort.

How often should I rebalance?

Once a year is sufficient. Some experts suggest rebalancing only when allocation drifts 5%+ from target. Too frequent rebalancing increases transaction costs and taxes.

Asset Allocation — Building a Balanced Portfolio

Asset allocation is how you divide your investments across different asset classes. It's the single biggest factor determining your portfolio's risk and return.

The Rule of Thumb

Equity allocation = 100 - Your Age. A 30-year-old: 70% equity, 30% debt. A 50-year-old: 50% equity, 50% debt. Aggressive investors: add 10%. Conservative: subtract 10%.

Asset Classes

Equity (stocks, equity MF): Growth engine, volatile. Debt (FDs, bonds, debt MF): Stability, regular income. Gold (SGB, Gold ETF): Hedge against inflation/crisis, 5-10% allocation. Real estate: Illiquid but diversifying. International equity: Currency diversification.

Rebalancing

Review allocation annually. If equity grew from 70% to 80%, sell some equity and buy debt to restore 70:30. This forces 'buy low, sell high' discipline. Rebalance when allocation drifts 5%+ from target.