Thinking about investment portfolios? Well, building a portfolio is like building a house, and as may know, it requires a lot of planning and consideration. You cannot wake up one morning and build a house! There is much more to it. Similarly, if you plan to create an investment portfolio, you should know a few basic things. In today’s article, we will look at the best investment portfolios for April 2025. Let us get started.
The Foundation of Investment Portfolio
One can build a luxury home, mid-size, or affordable home. Which one do you want to build? It will depend on a number of factors like your budget, your needs, etc. Similarly, when it comes to an investment portfolio, the portfolio creation will be based on your age, income, goals, and risk appetite. Once you factor in all the points – it will help you build your portfolio. We will look at different investment portfolios.
Different Types of Portfolio
In this section, we will talk about three types of portfolios. Also, understand who it is ideal for, the objectives of each category, and ideal asset allocation.
Category 1: Aggressive Portfolio
The category is ideal for you if you are a young investor (in your 20s or early 30s), have a long-term investment horizon (preferably 10+ years), have high risk tolerance, and are comfortable with market volatility. Let us give you an example. Since the start of 2025, the market has been super volatile – have you been comfortable with it?
When you create an aggressive portfolio you give yourself the opportunity for maximum capital appreciation and wealth creation in the long run. The short-term market dips are buying opportunities and not a point of concern.
Now, let us look at the most important thing – asset allocation. An aggressive portfolio will look something like below:
- Equity: 80 to 90% (including international equity). Within equity, you may have a higher allocation to mid and small-cap stocks. For example, you may have 30% in large-cap and 25% each in small and midcap stocks.
- Gold: 5%, which acts as an inflation hedge
- Debt: 10 to 15%, it will act as your emergency funds and provide stability to your overall portfolio.
Category 2: Moderate Portfolio
It is ideal for someone in their 30s to early 40s with a medium risk appetite. Also, if you are looking for a balanced approach that gives both growth and some safety, the moderate portfolio is the right fit for you.
The main objective of a moderate portfolio is steady growth, managing downside risks, and building wealth with controlled exposure to equity. Let us look at how asset allocation looks in this case:
- Equity: 50 to 60%, where the focus will be more on large-cap stocks.
- Debt: 25-35%, which includes PPF, Debt Funds, Corporate Bonds, FDs
- Gold: 5 to 10%, for diversification and hedge against inflation
Category 3: Conservative Portfolio
It is ideal for someone nearing retirement, with a low-risk appetite, with a primary focus on capital preservation, or someone looking for predictable returns.
The main objective here is capital protection, regular income, and minimal exposure to volatility. The asset allocation is quite different from what we have seen in the first two categories. Here is how the portfolio will look:
- Debt: 60 to 70%, which may include debt funds, Senior Citizen Savings Scheme, PPF, etc. The exact allocation will depend on one’s financial needs.
- Equity: 10 to 20%, the exposure will mainly be in large-cap stocks with no or minimal allocation to mid and small-cap stocks.
- Gold: 5%, for diversification
- Liquid Funds: 10 to 15%, for easy liquidity
The Exact Portfolio
If you were looking for a portfolio with company names and exact allocation, sorry to disappoint you! The truth is that the allocation is much more complex than what we have shared above. To help you explain, let us take an example. The percentage you will allocate to large-cap stocks will not depend on your risk portfolio but also on the valuation of large-cap stocks. If the large-cap stocks are trading at a premium, you are better off having limited exposure and vice versa.
If you need to have a portfolio for yourself, you can explore equity advisory services and get started.
Before you go
If you want to know your risk profile, you can download the Jarvis Invest app. By answering a few questions, you can know your risk profile. It is an AI-driven app that helps you create your portfolio, monitor it, and manage risk – all in one app.
