Suggests a '100-x' rule for portfolio allocation, where 'x' is age, advocating for a percentage in stable assets (FDs, bonds, gold) and the remainder in stocks, with allocation to small/mid/large caps varying based on age and risk tolerance, aiming for a 12-13% long-term return from large caps.
"Suppose 25, then x percent of your investment means 25 percent of your investment should go into safe assets where you get a stable rate of return, even if it is less, at 7, 8, 9, which can be obtained from gold, EPF, PPF, a little bit from FD, NPS, corporate bonds, government bonds, then you should invest the remaining 75 percent in the stock market but keep a mix in it as well. I usually say that if you are young then you can take risk, invest in small cap and mid cap, but even then at 40, 50, your Nifty should go to 50 only. In the remaining 50 percent, you can take more bets, maybe at 30 or 40 you can invest in mid cap, the remaining 10, 20 percent can be invested in small cap. If you are 30, 40, then you should invest more in Nifty 50 or large cap because there is stable return of 12 to 13 percent on a long term."
