Asset allocation
How your investments are split between equity, debt, gold and cash.
Equity grows most over long periods but can fall sharply; debt (FDs, PPF, bonds) is steadier; gold often holds up when shares fall; cash is for emergencies. The split matters more to your results and your sleep than any single fund choice.
A common starting point is more equity for goals 7+ years away and more debt as a goal gets close.
Example
₹10 lakh split 60/30/10: ₹6 lakh in equity funds, ₹3 lakh in debt and PPF, ₹1 lakh in gold.
Related terms
Rules as of tax year 2026-27. Written by the Welthr team; last reviewed on . Not financial advice.