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Asset Allocation Thumb Rule

100-your age
The % of funds allocated to debt = Your age
The % of funds allocated to equity = 100 – Your age
Swipe right for the example.
debt vs equity
If your age is 25, then the funds allocated to equity = 100-25 = 75% and the rest 25% should go into debt.
weightage
Funds allocated to equity holds higher risk. Based on this principle, your risk exposure decreases with age.

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