To give an example, think about how you want your life to be in next 10-20-30 yrs from now. Most likely there are some of the assets one would aspire to have: Own house, sizeable FD/debt, PF fund, Insurance, Equity, emergency fund etc. These constitutes your portfolio, based on this view you need to start building your portfolio, you may not have enough capital now for all these, thats fine, start small even if you put 100 rs in each its fine, it will grow over time. Just that you need to give priority to each and make a habit of saving for the future.
Now lets just talk about the Equity part, what is the total allocation to this should be, it depends on your age and risk taking ability, if you ask me, my allocation was about 10% of my networth in equity couple of years ago, now it is abt 15%.
Within this 15% I construct the portfolio of about 70% equity and 30% debt, this debt part is separate from the FD/debt component. This 30% debt is only used for adding to equity portion when the equity part goes into drawdown.
To bring about disciple it is not required to have huge capital, even when I had some saving of even rs 1000, I will break it up into 700 and 300, 300 would go into debt fund and 700 invested in buying stocks. Stock buying and selling will following a simple long term strategy and even if I can buy only 1 share with the cash available its still a good option.
Just follow this approach with discipline and I am sure you will see the real difference over time. Best of luck!!!
Now lets just talk about the Equity part, what is the total allocation to this should be, it depends on your age and risk taking ability, if you ask me, my allocation was about 10% of my networth in equity couple of years ago, now it is abt 15%.
Within this 15% I construct the portfolio of about 70% equity and 30% debt, this debt part is separate from the FD/debt component. This 30% debt is only used for adding to equity portion when the equity part goes into drawdown.
To bring about disciple it is not required to have huge capital, even when I had some saving of even rs 1000, I will break it up into 700 and 300, 300 would go into debt fund and 700 invested in buying stocks. Stock buying and selling will following a simple long term strategy and even if I can buy only 1 share with the cash available its still a good option.
Just follow this approach with discipline and I am sure you will see the real difference over time. Best of luck!!!
I know I have a long way to go