POSTED BY February 14, 2012 11:01 am COMMENTS (17)ON
I’m 32 years old, married with 1 daughter (8 months old). After reading Manish’s book, I decided that my portfolio needs rebalancing.
Currently my portfolio has almost 0% debt in it. Here is the composition:
* Stocks — 2.3 lac
* mutual funds – 5.2 lacs
* FD — 35,000 🙂
As you can see, out of 8 lacs, only 35,000 is in Debt. I want to increase this to a ratio of 80:20 (equity to debt).
I have a couple of options here:
1) Increase my monthly SIP contribution to debt…So make it around 9,000 debt and 11,000 in shares and equities. (Till now, I was investing only 14,000 pm all in equities and shares. After reading Manish’s book, I’ve decided to increase the investments from today itself to 19,000). So slowly but surely my Debt ratio is going to go up.
2) Sell some mutual funds or shares and reinvest in debt. If this is a better approach, should I sell the mutual funds that made the most profit? My shares are spread across 20 different shares at around 10K a share
Finally, debt means what?? Debt funds, FDs or a combination of these? Moneycontrol portfolio manager lumps debt funds under Equities, so I’m a bit confused.
Yes, and this is not any goal based rebalancing. It’s a plain and simple rebalancing — step 1 for me. Once I get a Debt to equity ratio set, then I’ll go in for other goal based rebalancing
Thanks for your help and advice