How should be the model portfolio ?

An investment portfolio is the portfolio of investments made in Shares, Gold, Real Estate, Bonds, Deposits. One should know how should be this portfolio. Which one should have more exposure and which should have less exposure.

First, we shall take investments in shares. Shares are always high risk, high potential investments. They are mostly bullish in the long term. But in the intermediate period, they are bullish at a time and they are bearish at a time. So investments in shares should be made for more than 10 years.

Secondly Gold is always the preferred investment for middle class people. It can be easily liquidated. It also has bullish and bearish cycle. But the bull and bear cycle would be shallow in depth when compared to Stocks.

Thirdly, It is Real Estate. But recently, the myth about real estate that it will be always bullish is tarnished. The 2008 bear market is due to the burst of real estate bubble. But in the long run it will be always bullish.

Fourthly, it is investments in Bonds and Deposits. Surely, it is the most safe investment. But it is the least attractive investments in terms of returns.
Definitely the age plays a crucial role in the Investment portfolio. A model portfolio should have all the investments but the ration should be derived based on one’s age.  A young person should have more exposure to stocks and a aged person should have more exposure to deposits.