Add Zee Business as a Preferred Source
How much equity to hold in your portfolio? Experts explain age-wise retirement strategy
Retirement Planning: Speaking with Zee Business, Vikas Puri, Senior Partner, Complete Circle Capital and Kirttan Shah, Founder & CEO, Truvanta Wealth, explained that with people working for about 30–35 years but potentially living up to 80–85 years, individuals may need to fund nearly 50–60 years of expenses. This makes early and disciplined investing essential.
)
How much equity to hold in your portfolio? Experts explain age-wise retirement strategy
Written By: Shristi Rani
Updated: Fri, May 01, 2026
03:04 PM IST
03:04 PM IST
New Delhi, ZeeBiz WebDesk
The right proportion of investments between growth and safety is needed in retirement planning, and it is considered vital to make the appropriate equity allocation based on the age and the time horizon of the individual.
In a discussion with Zee Business, Vikas Puri, Senior Partner at Complete Circle Capital, and Kirttan Shah, Founder & CEO at Truvanta Wealth, said that individuals working for 30-35 years need to prepare for their financial requirements, which may go up to 50-60 years, since they can potentially live for 80-85 years.
Start early to build a meaningful corpus
According to Puri, one should begin early, even with a small amount, as this can help one develop a substantial retirement savings account through the power of compounding. The rate of inflation, according to him, plays an important role in reducing purchasing power, as illustrated by his statement that an expenditure of Rs 60,000 per month could eventually reach the level of Rs 2–3 lakhs in future.
TRENDING NOW
Furthermore, he pointed out that even a monthly SIP of Rs 10,000, for about 30 years on the assumption that one will earn 12 per cent annually, could possibly result in an accumulation of more than Rs 3 crores, indicating how small, consistent investments can build substantial wealth over time.
Also Read: What is SIP 7-5-3-1 rule? Experts explain simple formula for long-term wealth creation
Equity is key to beating inflation
According to Puri, real returns matter more than nominal returns. He explained that if returns are around 10 per cent and inflation is 5–6 per cent, the real return is only about 4 per cent. Hence, a higher allocation to equity is necessary, especially when the investment horizon is long.
Age-wise equity strategy explained
Experts stressed that there is no one-size-fits-all rule, and allocations should be aligned with an individual’s risk appetite, financial goals, and time horizon.
In your 20s: Puri suggested that investors in their mid-20s can allocate 90 per cent or more to equity, given the long time horizon and ability to absorb volatility.
In your 30s: Puri recommended 70–80 per cent equity and 20–30 per cent debt. With 20–30 years remaining until retirement, equity should drive portfolio growth.
In your 40s: Puri advised 60–70 per cent equity and 30–40 per cent debt. While the time horizon reduces, staying too conservative can hurt long-term wealth creation.
In your 50s: Vikas Puri suggested a balanced mix of around 45–55 per cent equity, with the rest in debt. Focus shifts towards protecting the corpus while ensuring moderate growth.
At 60 or later: Even late starters should maintain 30–35 per cent equity exposure, according to Puri. He noted that since investments like NPS can continue till age 75–85, some equity exposure remains important.
Also Read: Planning your retirement in 2026? Experts share smart investment strategies
How to adjust allocation over time?
Shah stressed that an investor should gradually decrease his investment in stocks as he gets closer to retirement.
- Aggressive investors, according to him, should keep their investment in equity at 70–80 per cent till age 55 and thereafter gradually shift to fixed income instruments.
- Moderate investors were advised to have a 50:50 ratio between equity and debt until they reach the age of 58, after which they should gradually decrease their investments in equity.
- For conservative investors, he advised opting for lifecycle funds, which automatically rebalance equity and debt based on age.
Role of NPS in retirement planning
Shah also stated that National Pension System (NPS) has become very appealing since it now permits high equity investment (upto 75 to100 per cent in certain schemes), in addition to tax advantages, along with automatic allocation of investments using lifecycle funds.
However, according to him, there was one drawback associated with NPS as well because upon maturity, although one may withdraw up to 60 per cent of the accumulated amount tax free, but at least 20 per cent had to be invested in an annuity, which provides relatively lower returns.
Key takeaways for investors
Both experts agree that:
- Starting early is crucial
- Equity should form the core of long-term retirement planning
- Asset allocation must evolve with age, risk profile, and financial goals
As Puri summed up, maintaining the right balance between growth (equity) and stability (debt), while staying invested for the long term, is the most effective way to build a retirement corpus that can withstand inflation and support financial independence.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
Shristi Rani
Shristi Rani
RECOMMENDED STORIES
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
RELATED NEWS
Retirement planning: How Rs 10,000 SIP can grow to Rs 8 crore? Experts explain portfolio strategy, inflation impact
Planning your retirement in 2026? Experts share smart investment strategies
Guaranteed pension under NPS? PFRDA panel to review withdrawal and payout rules
Rs 1 crore by 45? The SIP 'magic formula' every 30-year-old should know
NPS and APY cross Rs 16 lakh crore in AUMs; subscriber base tops 9 crore
