What is the best portfolio comprised of?

General
1

Hi Guys,

Just wanted to know what according to you is the best portfolio allocation comprised of?

2

Can you share more insights into what you mean by portfolio? Are you referring to an equity portfolio consisting of only stocks or are you referring to an asset mix portfolio comprising on stocks, MF, bonds etc.

3

Yes i am referring to a mix portfolio comprising of stocks, MF, bonds

If a recession is around the corner, how can a portfolio be bulletproof? Or is bleeding of portfolio an unavoidable thing during recession?

4

Unfortunately, no asset is safe in a slump. Although they say uncorrelated assets, in a slump correlations goto 1 and they all nose dive.

Having said, you can stick to basic guidelines like (assuming you are young and have age by your side) -

  1. 50% Equity MF (mix of Index fund, small and mid cap fund, and maybe a multicap fund)
  2. 20-30% of debt funds - Ultrashort term bonds /liquid, corporate bonds
  3. Gold - 10%
  4. Cash - 10%

This is just a rough guideline, you can build on this by consulting with your advisor.