How to invest Rs 5 lakh based on age and risk

Livemint reports that a Rs 5 lakh corpus can be allocated across equity, fixed deposits, gold and other assets depending on an investor's age, goals, risk appetite and financial responsibilities. Sarvjeet Singh Virk, CEO of jUMPP, says a 25-year-old with a 15-20 year horizon could consider a larger share of equities, while a 60-year-old should prioritise capital preservation and liquidity with a larger allocation to fixed-income options.

The New Indian Express, in a separate guide for a 23-year-old starting to invest, advises building a 3-6 month emergency fund first, getting health insurance and term life cover, and starting SIPs immediately with Rs 1,000-5,000 per month in low-cost Nifty 50 or flexi-cap funds. It recommends allocating 70-80% to equity and automating investments.

Both sources stress diversification and regular portfolio reviews. Livemint notes there is no universal formula, the correct allocation depends on individual debt, savings, and time horizon. The New Indian Express emphasises that habit is more important than the amount, and that a Rs 5,000 monthly SIP started at 23 can grow substantially more by age 60 than the same SIP begun at 30.