The 100 Minus Age Rule

06 Oct 2022

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The ‘100 minus age’ rule, is a classic guideline on how to allocate money across equity and fixed income.

Investors must simply subtract their age from 100 to arrive at an approximate equity allocation, with fixed income accounting for the rest. This ensures investors have higher equities at a younger age and vice versa.

Young investors have age on their hands and are better placed to build wealth via equities, which is a long-term proposition as they have a higher risk appetite. As they get older, they get more risk averse and prefer stable and regular income.

100 – Your Age = Equity Allocation

  • 30’s : 70% Equity (Equity MF’s, Alt Investments, Stocks.) 30% Debt (Debt MF’s, FD, Bonds etc)
  • 50’s: 50% Equity (Equity MFs, Alt Investments, Stocks.) 50% Debt (Debt MF’s, FD, Bonds etc)
  • 70’s: 30% Equity (Equity MFs, Alt Investments, Stocks.) 70% (Debt MF’s, FD, Bonds etc)

Mutual Fund are subject to Market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision.

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    The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

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