Key Takeaway
The 100-minus-age rule suggests equity allocation = 100 - your age. A 30-year-old should hold ~70% equity and 30% debt. This gradually shifts to more conservative allocations as retirement approaches.
Recommended Split
Advertisement
Frequently Asked Questions
What is asset allocation?
Asset allocation is the strategy of dividing your investments across different asset classes , equity, debt, gold, real estate , to balance risk and return based on your risk profile and goals.
What is the 100-minus-age rule?
A simple rule: allocate (100 minus your age)% to equity. So a 30-year-old would put 70% in equity and 30% in debt. This is a starting point , adjust based on your risk profile and goals.
How often should I rebalance?
Rebalance your portfolio annually or when any asset class deviates by more than 5-10% from your target allocation. This forces you to sell high and buy low systematically.
Get Smarter With Money Every Week
Join 10,000+ readers. One actionable money tip delivered free every Sunday.
Was this calculator helpful?
Advertisement