The Hindu Business Line : We've Got Mail

A mix of debt and equity is ideal for a balanced investment portfolio How do investors split debt and equity in their portfolios? What kind of instruments do they invest in?

We asked our readers and here's what they have to say.

"I do invest in debt instruments such as fixed deposits. As I am a housewife, my investments are restricted to debt instruments, especially fixed deposit.

"The ratio that I follow right now is 80 per cent for debt and 20 per cent for equity (mutual funds only).

But this is contrary to how I used to invest when I was working." Anagha, housewife, Mumbai.

"I do invest in debt instruments such as bank and company fixed deposits, National Savings Certificate and Government of India Bonds. The allocation for debt instruments is 75 per cent of my portfolio and 25 per cent for equities. The reason behind the allocation is to minimise risk and secure savings."

P. Premnath, retired banker, Chennai

"I invest in fixed deposits occasionally when a considerable amount of money is available for a short term (less than two years). I have equity investments in the form of unit-linked investment plans for which I pay premiums regularly. As I am in my twenties, I consider equity as a long-term investment and debt as a fill-up option."

Nirmal, investor, Delhi

"I invest in debt instruments such as fixed deposits, public provident fund, National Savings Certificate. This serves two purposes. One is that they are risk-free investments and two, it allows tax savings under 80C (if invested for more than five years, up to Rs 1 lakh). Ideally, I invest 60-70 per cent of my money in debt instruments, because I am a little risk-averse in investments."

Kapil Chhabra, finance executive, Mumbai

"Yes, I invest in fixed deposits of banks. The amount I invest is about 25 per cent of my total savings. I also invest in debtbased mutual funds; the allocation is 15 per cent of my total investment.

This is basically to have a balance between equity and debt as the market is quite unpredictable. For now, my portfolio would have 40 per cent debt and 60 per cent equity."

Ramya Seetharaman, finance executive, Chennai

"Yes, I have debt investments as well as equity. Equity accounts for about 20 per cent of my portfolio. Debt makes up the balance with 50 per cent in bank fixed deposits, 10 per cent in Post Office Schemes and about 15 per cent in Government Bonds."

Poornima A., housewife, Chennai