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Rules of Investment

Rules of investment
  • Emergency fund – always set aside minimum 6 months of living expenses as emergency funds. You can keep this in savings account
  • Debt – to be equal to your age. For example, if you are 25 years old, you should allocate 25% into debt. Increase your debt exposure as you grow older. Diversify your debt portfolio into FD, Gold, Liquid fund, and Cash
  • Equity – can be done through a mix of mutual funds, direct stocks, and index funds
  • Stocks – invest only in shares of companies that you can hold for very long term. Maintain maximum 20 stocks and maximum 25% exposure to any single sector
  • Review your investment portfolio at least once a quarter and reallocate as required

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