Dear Friends,
After reading this forum and also other sites, I came to know that there should be seperate portfolio for each goal. For Long term goals, no need to invest in Debt instruments. As and when goal becomes shorterm(say 3-4 years) ,we will divert the portion of equity funds to debt funds gradually. Or else, every year we will check the annualised return with our benchmark (expected return) and buy or sell units in equity funds accordingly, as answered by Ashal for question on when to exit by FFC.
So, my question is what is the need of Asset Allocation for longterm goals? Why most experts are suggesting to invest in PPF for long term?
Ofcourse, we can diversify within equity and may be a little portion in Gold also.
Please clarify.
R Siva Prasad