The big idea
When you need the money matters more than which fund was hot last quarter.
The car analogy
- Equity (mutual funds, stocks) = engine: power for long trips.
- Debt (FD, EPF, PPF, debt funds) = brakes: stability when you must stop.
- Gold = spare tyre: not daily driving, but useful in shocks.
Mix by when you need the money
Under 3 years
- Wedding next year, bike in 18 months
- Mostly debt / FD
- Don't gamble short money in equity
7+ years (freedom, retirement)
- Mostly equity index funds
- ~10% gold optional
- EPF/PPF count as debt already
One SIP per goal
Freedom, house down payment, child's education: each gets a price, a date, and its own monthly SIP. The goal SIP calculator helps you work backwards.
Rebalance once a year
Markets move. A 70% equity / 30% debt plan can become 80/20 after a rally. Once a year, nudge back: sell a little equity high or add to debt, per your plan.
Aman's chapter
Aman's bike fund (2 years) sits in FD. Freedom money goes mostly to equity. Spare FD above his emergency fund moves into equity, the same idea as the tracker's "move spare savings" tip.
Go deeper: international / other assets
For most beginners, India equity + debt + some gold is enough. Add complexity only when basics are boring, not when you're bored.
Last reviewed: 2026-10-18
Common mistakes
- Putting next year's tuition in a small-cap fund because it returned 80%.
- Never rebalancing, then panicking when you're 90% equity before a crash.
- Ignoring EPF/PPF when counting your debt side.
Do this today
Quick check
Create free account to save progress on all devices.
Right asset for the right date. Rebalance yearly, not on every news alert.
Next lessonStay the course: crashes, noise, and your yearly check