Age factor of Investing

The early 20s is a good time to begin small and inculcate the habit of investing regularly in MFs through SIPs. As you gain confidence, you can move to direct equities. If in your 20s or 30s, you can afford to take aggressive bets and invest in mid-caps, provided

the companies are market leaders and have a sound management in place. From your 30s up to the early 40s, you can allocate about 70 per cent of your portfolio to equities. This is the period when one’s income generating ability is at its peak and so, one should invest aggressively. It is better to stick to a non-aggressive portfolio once you touch 50: Beyond 50, your equity investment should be largely through MFs and/or confined to largecaps. Once you cross 60, the bulk of your investment should be in debt and monthly income generating schemes.

However, some experts feel it is important to allocate some portion of one’s portfolio to equity even after retirement. Even someone who is 60 might have another 15 to 25 years to live. These investors can invest up to 20 per cent of their portfolio into equity

MFs to get higher returns.