Best portfolio combination? 50% Equity: 50% Debt shows low probability of negative returns - Study - Mutual Funds News financialexpress.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from financialexpress.com Daily Mail and Mail on Sunday newspapers.
An analysis shows that on a pre-tax basis, the Equal Weighted Portfolio has the best risk-reward. However, the post-tax return from this combination may not be efficient going forward since the capital gains from all asset classes, except .
Risk profiling changes with age and financial goals. Younger investors can afford to be more aggressive, while those in their 40s should balance risk and catch up on investments. Beginners should take an aggressive stance. The biggest risk for a 40-year-old is not achieving financial goals and accumulating loans. Those in their 50s should assess if they have saved enough and can start reducing risk. At 60, having a portion of investments in equities can help offset any shortfall in corpus.