How should I go about investing?

Punit Malik
2 min readJul 3, 2021


When there are multiple asset classes (e.g. Fixed Deposit, Mutual Funds, Stocks, Real Estate, Gold, etc.) to invest in, a natural question that comes to mind is how to best allocate my investments. Simple answer to this question is: Asset Allocation.

Asset allocation is the process of investing across different asset classes to achieve optimum risk adjusted returns. Idea is to achieve diversification to spread out your risk. You must have come across the asset allocation strategy of calculating your equity portion by subtracting your age from 100. For example, if you are 30 years old, you should invest 70% in equity and rest in debt. I don’t endorse this approach simply because it doesn’t take into consideration your risk profile.

My philosophy is that the asset allocation depends on a combination of your risk profile, financial situation, and personal goals.

For example, here is a generic asset allocation split solely based on risk profile:

· Conservative investor: 15% Equity, 80% Debt, 5% Real Estate

· Moderate investor: 45% Equity, 40% Debt, 15% Real Estate

· Aggressive investor: 75% Equity, 5% Debt, 20% Real Estate

It’s not advisable to pick an off the shelf asset allocation strategy. It must be unique to your situation. Hence, you should consult a financial advisor for your detailed risk profiling to work out the most optimum asset allocation split.

Looking at the asset allocation split above, you might wonder the % investment for gold. I am not convinced to invest in gold as an investment. However, if you feel strongly about gold and gold investment is in line with your investment philosophy, i would suggest that you keep it to 5–10% of your portfolio.



Punit Malik

Indian | Living in London | Passionate about learning, saving and investing | Here to motivate people to start their investment journey.