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⚖️Asset Allocation

Safety vs Growth Split

Find a conceptual balance between protecting your money and growing it.

1Your Profile

⚠️ Disclaimer: This tool is for educational purposes only. It provides general guidance and is not financial advice. Please consult a certified financial planner for personalized recommendations.

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Understanding Asset Allocation

1What is this?

Asset allocation is about dividing your money between "safe" options (like FDs, PPF) and "growth" options (like equity mutual funds, stocks). The right split depends on your age, timeline, and how much risk you can handle. This tool suggests a conceptual split to help you think about balance.

2Why this can be confusing

  • •Not understanding the trade-off between safety and growth
  • •Putting all money in one type (too safe or too risky)
  • •Changing strategy based on short-term market news
  • •Comparing their situation to others without considering differences

3Example: Ananya, 28 years old

  1. 1Ananya is 28 with a stable job
  2. 2She has 10+ years before she needs the money
  3. 3She is comfortable with medium risk
  4. 4The tool suggests: 40% Safety, 60% Growth

💡 With a long horizon, Ananya can afford more growth allocation. She might put 40% in PPF/debt funds and 60% in index funds. As she gets older, she can shift more to safety.

4How this tool helps

  • ✓Gives a starting point for thinking about allocation
  • ✓Adjusts based on your timeline and risk comfort
  • ✓Shows what types of options fit each bucket
  • ✓Explains why the split makes sense for you

5How to read your results

  • →"Safety %" shows how much to keep in low-risk options
  • →"Growth %" shows how much for market-linked options
  • →Example options under each bucket are illustrative, not recommendations
  • →The split is a guideline, not a strict rule

6What this tool does not do

  • ✗Tell you exactly which funds to buy
  • ✗Account for your existing investments or loans
  • ✗Replace professional portfolio planning
  • ✗Guarantee any returns

7Frequently Asked Questions

What is asset allocation?▼

Asset allocation is how you divide your money between different types of investments (safety vs. growth, or debt vs. equity). The goal is to balance risk and returns.

What is a good split for beginners?▼

A common starting point is the "100 minus age" rule. If you are 30, put 70% in growth and 30% in safety. Adjust based on your comfort with risk.

Should I change my allocation over time?▼

Yes. As you get older or closer to your goal, shift more to safety. Review your allocation every year or when your life situation changes.

What counts as safety vs. growth?▼

Safety: FDs, PPF, debt funds, savings. Growth: Equity mutual funds, index funds, stocks. Balanced funds are somewhere in between.

Is 100% safety bad?▼

Not bad, but your money may not beat inflation over time. Some growth allocation helps your money grow in the long run.

8What to do next

  1. 1Note your current split (if any)
  2. 2Compare with the suggested split
  3. 3Make gradual changes, not sudden shifts
  4. 4Rebalance once a year
  5. 5Consult an advisor for large portfolios

⚠️ Disclaimer: This tool provides conceptual guidance only. It is not investment advice. Actual allocation depends on many personal factors.

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