Equity & Debt 70/30 Asset Allocation
This model portfolio aims to create a balanced investment by combining equity and debt
Returns
ETFs
3
Min. Amount
₹96
Ideal for
About the model portfolio
This model portfolio aims to create a balanced investment by combining equity and debt
This model portfolio aims to create a balanced investment by combining equity and debt. The equity component, split between large-cap and mid-cap stocks, offers growth potential, while the debt component aims to provide stability and cushion the portfolio during equity market downturns.
The exposure is taken with the help of three ETFs from Zerodha Mutual Fund:
- Zerodha Nifty 100 ETF - This ETF invests in securities part of the Nifty 100 Index (or Large caps).
- Zerodha Nifty Midcap 150 ETF - This ETF invests in securities part of the Nifty Midcap 150 Index (or Midcaps).
- Zerodha Nifty 8-13 Yr G-Sec ETF – This ETF aims to track the performance of long-term government bonds, providing exposure to the debt market.
Live Performance
Tax Implication
Each ETF in this model portfolio has specific tax implications that depend on the nature of its underlying investments. Your individual tax liability will be determined by the type of ETF, its holding period, and the capital gains or returns earned. To know more, check the tax implications of each underlying ETF separately.
| Top Constituents | Weightage (%) |
|---|---|
| Zerodha Nifty 100 ETF | 35.00 % |
| Zerodha Nifty Midcap 150 ETF | 35.00 % |
| Zerodha Nifty 8-13 Yr G-Sec ETF | 30.00 % |
Resources
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Frequently Asked Questions
This model portfolio offers a classic balanced approach for long-term investors. It is designed to capture the growth potential of the stock market by allocating 70% to equities (split between large and mid-caps), while the 30% allocation to medium to long-term government bonds (debt) may provide stability to the portfolio. It is ideal for investors seeking a middle path between aggressive growth and conservative capital preservation.
Each ETF in the model portfolio carries its own level of risk. The overall risk of the Equity and Debt 70/30 Asset Allocation will depend on the combined risk of its underlying ETFs. You can view the risk level of each fund on its respective page before investing:
Unlike an all-equity portfolio which is fully exposed to stock market fluctuations, this 70/30 model introduces a debt component and this aims to lower the overall portfolio volatility and soften potential drawdowns compared to a 100% equity strategy.
The 70% equity and 30% debt split is a strategy for balanced long-term growth. The specific weights are chosen based on our internal research and risk-return profiles, aiming to create a portfolio that participates meaningfully in equity growth while maintaining a balanced allocation to debt.
This model portfolio is rebalanced on a quarterly basis. Once every quarter, this model portfolio is reviewed and the weights are aligned with the selected asset allocation strategy for the next quarter.
Your investment's taxation is determined upon redemption and is based on the specific tax laws for each underlying ETF. It is crucial to note that the tax treatment for Debt funds (Long-Term Gilts) is different from that of Equity funds.
For comprehensive and up-to-date information regarding taxation, please visit the individual fund pages.