Mutual Fund Category

What proportion of debt and equity mutual funds is the best for a moderate type investor?


As a general guideline, a moderate investor may consider allocating a larger proportion of their portfolio to equity funds compared to debt funds, as equities have historically offered higher long-term returns. A common rule of thumb is to allocate around 60% to 70% of the portfolio to equity funds and the remaining 30% to 40% to debt funds.

It’s important to note that these allocation suggestions are not universal and should be considered as a starting point. It’s advisable to consult with a financial advisor or conduct thorough research to determine the best allocation that aligns with their specific financial situation, goals, and risk tolerance.