A Financial plan gives us an opportunity to save money for your future needs by Investing in financial instruments. There is no such thing as a good Investment plan or a bad investment plan. Each plan can be good or bad depending on how well you create your plan basis your needs.
You might choose a long-term plan for high returns or a short-term plan for gaining minimal returns, which mainly depends upon your goals. Therefore, it is important to create an investment plan wisely keeping in mind your Financial goals. We have listed some of the steps to create the best investment plan.

One needs to understand his or her risk profile here for investing. Risk profile would depend on various factors such as:
| Risk Ratings |
|---|
| Aggressive |
| Moderately Aggressive |
| Moderate |
| Moderately Conservative |
| Conservative |
Once you have your risk assessment or rating in place, the next step is to choose the Asset Allocation.
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Putting all your eggs in one basket is never a good idea, and hence one needs to diversify their holdings across asset classes (equity, debt, cash, commodities {Gold}). This asset allocation will ensure that various asset classes perform over time and give a good return on the overall Portfolio.
A sample asset allocation could be:
| Aggressive | Moderate | Conservative | |
|---|---|---|---|
| Annual return | 16% | 14% | 11% |
| Annual standard deviation | 15% | 10% | 6% |
| Debt | 30% | 50% | 70% |
| Equity | 60% | 40% | 20% |
| Commodity | 10% | 10% | 10% |
| Total | 100% | 100% | 100% |
Given the risk that one can take, different allocations to equity are proposed. The higher the risk-taking ability more the allocation to equity. There are also various thumb rules like equity allocation to be 100 - (age of the person in years) and rest to be in debt.
Fund Selection Methodology used to find 5 funds
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2025 (%) Sub Cat. DSP Equity Opportunities Fund Growth ₹608.842
↓ -0.63 ₹17,331 -4 -4.9 -0.4 17.6 13.6 7.1 Large & Mid Cap Aditya Birla Sun Life Small Cap Fund Growth ₹91.745
↓ -0.09 ₹5,253 9.2 6.1 10.2 18 14 -3.7 Small Cap Kotak Standard Multicap Fund Growth ₹84.404
↑ 0.16 ₹54,839 -3.1 -3.9 1.4 14.3 12.4 9.5 Multi Cap Motilal Oswal Multicap 35 Fund Growth ₹57.3532
↑ 0.54 ₹12,770 1.8 -8.1 -4.5 18.5 12.1 -5.6 Multi Cap Invesco India Growth Opportunities Fund Growth ₹101.46
↑ 0.42 ₹9,761 3.3 -2.4 7.1 22.9 17.3 4.7 Large & Mid Cap Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 27 May 26 Research Highlights & Commentary of 5 Funds showcased
Commentary DSP Equity Opportunities Fund Aditya Birla Sun Life Small Cap Fund Kotak Standard Multicap Fund Motilal Oswal Multicap 35 Fund Invesco India Growth Opportunities Fund Point 1 Upper mid AUM (₹17,331 Cr). Bottom quartile AUM (₹5,253 Cr). Highest AUM (₹54,839 Cr). Lower mid AUM (₹12,770 Cr). Bottom quartile AUM (₹9,761 Cr). Point 2 Oldest track record among peers (26 yrs). Established history (19+ yrs). Established history (16+ yrs). Established history (12+ yrs). Established history (18+ yrs). Point 3 Top rated. Rating: 5★ (upper mid). Rating: 5★ (lower mid). Rating: 5★ (bottom quartile). Rating: 5★ (bottom quartile). Point 4 Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Risk profile: Moderately High. Point 5 5Y return: 13.61% (lower mid). 5Y return: 14.00% (upper mid). 5Y return: 12.37% (bottom quartile). 5Y return: 12.14% (bottom quartile). 5Y return: 17.32% (top quartile). Point 6 3Y return: 17.55% (bottom quartile). 3Y return: 18.03% (lower mid). 3Y return: 14.31% (bottom quartile). 3Y return: 18.54% (upper mid). 3Y return: 22.95% (top quartile). Point 7 1Y return: -0.39% (bottom quartile). 1Y return: 10.24% (top quartile). 1Y return: 1.36% (lower mid). 1Y return: -4.49% (bottom quartile). 1Y return: 7.14% (upper mid). Point 8 Alpha: -4.45 (bottom quartile). Alpha: 0.00 (lower mid). Alpha: 0.20 (upper mid). Alpha: -6.56 (bottom quartile). Alpha: 2.57 (top quartile). Point 9 Sharpe: -0.15 (bottom quartile). Sharpe: 0.46 (top quartile). Sharpe: 0.01 (lower mid). Sharpe: -0.37 (bottom quartile). Sharpe: 0.23 (upper mid). Point 10 Information ratio: 0.09 (lower mid). Information ratio: 0.00 (bottom quartile). Information ratio: -0.09 (bottom quartile). Information ratio: 0.45 (upper mid). Information ratio: 0.83 (top quartile). DSP Equity Opportunities Fund
Aditya Birla Sun Life Small Cap Fund
Kotak Standard Multicap Fund
Motilal Oswal Multicap 35 Fund
Invesco India Growth Opportunities Fund
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2025 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Sub Cat. Aditya Birla Sun Life Medium Term Plan Growth ₹42.6051
↑ 0.04 ₹3,098 0.6 3.5 7 9.3 10.9 8.4% 2Y 10M 10D 3Y 9M 29D Medium term Bond Nippon India Strategic Debt Fund Growth ₹16.4511
↑ 0.01 ₹145 0.3 1.5 6.1 7.4 9.6 8.07% 3Y 3M 14D 4Y 3M 25D Medium term Bond Axis Strategic Bond Fund Growth ₹29.3397
↑ 0.01 ₹2,076 0.4 1.7 4.6 7.3 8.2 8.39% 3Y 22D 4Y 6M 11D Medium term Bond UTI Gilt Fund Growth ₹64.8013
↓ -0.01 ₹548 0.7 2.1 1.6 6.4 5.1 6.52% 4Y 5M 5D 11Y 6M 22D Government Bond ICICI Prudential Gilt Fund Growth ₹105.057
↑ 0.02 ₹9,062 -0.6 0.7 1.4 6.5 6.8 7.59% 8Y 4M 20D 20Y 7D Government Bond Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 27 May 26 Research Highlights & Commentary of 5 Funds showcased
Commentary Aditya Birla Sun Life Medium Term Plan Nippon India Strategic Debt Fund Axis Strategic Bond Fund UTI Gilt Fund ICICI Prudential Gilt Fund Point 1 Upper mid AUM (₹3,098 Cr). Bottom quartile AUM (₹145 Cr). Lower mid AUM (₹2,076 Cr). Bottom quartile AUM (₹548 Cr). Highest AUM (₹9,062 Cr). Point 2 Established history (17+ yrs). Established history (11+ yrs). Established history (14+ yrs). Established history (24+ yrs). Oldest track record among peers (26 yrs). Point 3 Top rated. Rating: 4★ (upper mid). Rating: 4★ (lower mid). Rating: 4★ (bottom quartile). Rating: 4★ (bottom quartile). Point 4 Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Point 5 1Y return: 7.03% (top quartile). 1Y return: 6.11% (upper mid). 1Y return: 4.62% (lower mid). 1Y return: 1.57% (bottom quartile). 1Y return: 1.43% (bottom quartile). Point 6 1M return: 0.01% (upper mid). 1M return: -0.02% (lower mid). 1M return: 0.02% (top quartile). 1M return: -0.03% (bottom quartile). 1M return: -0.07% (bottom quartile). Point 7 Sharpe: 1.07 (top quartile). Sharpe: 0.37 (upper mid). Sharpe: -0.17 (lower mid). Sharpe: -0.84 (bottom quartile). Sharpe: -1.04 (bottom quartile). Point 8 Information ratio: 0.00 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 8.40% (top quartile). Yield to maturity (debt): 8.07% (lower mid). Yield to maturity (debt): 8.39% (upper mid). Yield to maturity (debt): 6.52% (bottom quartile). Yield to maturity (debt): 7.59% (bottom quartile). Point 10 Modified duration: 2.86 yrs (top quartile). Modified duration: 3.29 yrs (lower mid). Modified duration: 3.06 yrs (upper mid). Modified duration: 4.43 yrs (bottom quartile). Modified duration: 8.39 yrs (bottom quartile). Aditya Birla Sun Life Medium Term Plan
Nippon India Strategic Debt Fund
Axis Strategic Bond Fund
UTI Gilt Fund
ICICI Prudential Gilt Fund
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2025 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Sub Cat. PGIM India Short Maturity Fund Growth ₹39.3202
↓ 0.00 ₹28 1.2 3.1 6.1 4.2 7.18% 1Y 7M 28D 1Y 11M 1D Short term Bond UTI Banking & PSU Debt Fund Growth ₹22.9694
↑ 0.01 ₹1,206 0.8 1.9 4.8 6.7 7.8 7.29% 11M 23D 1Y 22D Banking & PSU Debt HDFC Banking and PSU Debt Fund Growth ₹23.8034
↑ 0.02 ₹5,316 0 0.7 3.1 6.5 7.5 7.58% 3Y 22D 4Y 3M 22D Banking & PSU Debt Aditya Birla Sun Life Corporate Bond Fund Growth ₹116.599
↑ 0.06 ₹25,168 -0.2 0.6 2.8 6.8 7.4 7.64% 4Y 1M 17D 7Y Corporate Bond HDFC Corporate Bond Fund Growth ₹33.5408
↑ 0.02 ₹31,611 -0.3 0.4 2.6 6.6 7.3 7.65% 4Y 2M 23D 7Y 4M 10D Corporate Bond Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Sep 23 Research Highlights & Commentary of 5 Funds showcased
Commentary PGIM India Short Maturity Fund UTI Banking & PSU Debt Fund HDFC Banking and PSU Debt Fund Aditya Birla Sun Life Corporate Bond Fund HDFC Corporate Bond Fund Point 1 Bottom quartile AUM (₹28 Cr). Bottom quartile AUM (₹1,206 Cr). Lower mid AUM (₹5,316 Cr). Upper mid AUM (₹25,168 Cr). Highest AUM (₹31,611 Cr). Point 2 Established history (23+ yrs). Established history (12+ yrs). Established history (12+ yrs). Oldest track record among peers (29 yrs). Established history (15+ yrs). Point 3 Top rated. Rating: 5★ (upper mid). Rating: 5★ (lower mid). Rating: 5★ (bottom quartile). Rating: 5★ (bottom quartile). Point 4 Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderately Low. Risk profile: Moderately Low. Risk profile: Moderately Low. Point 5 1Y return: 6.08% (top quartile). 1Y return: 4.81% (upper mid). 1Y return: 3.06% (lower mid). 1Y return: 2.83% (bottom quartile). 1Y return: 2.58% (bottom quartile). Point 6 1M return: 0.43% (top quartile). 1M return: 0.01% (upper mid). 1M return: -0.20% (lower mid). 1M return: -0.21% (bottom quartile). 1M return: -0.29% (bottom quartile). Point 7 Sharpe: -0.98 (bottom quartile). Sharpe: 0.13 (top quartile). Sharpe: -0.85 (upper mid). Sharpe: -0.87 (lower mid). Sharpe: -0.90 (bottom quartile). Point 8 Information ratio: 0.00 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 7.18% (bottom quartile). Yield to maturity (debt): 7.29% (bottom quartile). Yield to maturity (debt): 7.58% (lower mid). Yield to maturity (debt): 7.64% (upper mid). Yield to maturity (debt): 7.65% (top quartile). Point 10 Modified duration: 1.66 yrs (upper mid). Modified duration: 0.98 yrs (top quartile). Modified duration: 3.06 yrs (lower mid). Modified duration: 4.13 yrs (bottom quartile). Modified duration: 4.23 yrs (bottom quartile). PGIM India Short Maturity Fund
UTI Banking & PSU Debt Fund
HDFC Banking and PSU Debt Fund
Aditya Birla Sun Life Corporate Bond Fund
HDFC Corporate Bond Fund
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2025 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Sub Cat. Indiabulls Liquid Fund Growth ₹2,664.97
↑ 0.43 ₹271 1.6 3.1 6.1 6.9 6.6 6.13% 1M 1D 1M 1D Liquid Fund PGIM India Insta Cash Fund Growth ₹358.723
↑ 0.06 ₹584 1.6 3.1 6.1 6.9 6.5 7.71% 1M 27D 2M 1D Liquid Fund JM Liquid Fund Growth ₹75.1083
↑ 0.01 ₹2,835 1.5 3 6 6.8 6.4 7.11% 1M 23D 1M 27D Liquid Fund Aditya Birla Sun Life Savings Fund Growth ₹577.406
↑ 0.05 ₹19,985 1.1 2.5 5.9 7.1 7.4 7.45% 5M 26D 7M 2D Ultrashort Bond Axis Liquid Fund Growth ₹3,069.34
↑ 0.58 ₹51,160 1.6 3.1 6.2 6.9 6.6 6.23% 1M 5D 1M 5D Liquid Fund Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 27 May 26 Research Highlights & Commentary of 5 Funds showcased
Commentary Indiabulls Liquid Fund PGIM India Insta Cash Fund JM Liquid Fund Aditya Birla Sun Life Savings Fund Axis Liquid Fund Point 1 Bottom quartile AUM (₹271 Cr). Bottom quartile AUM (₹584 Cr). Lower mid AUM (₹2,835 Cr). Upper mid AUM (₹19,985 Cr). Highest AUM (₹51,160 Cr). Point 2 Established history (14+ yrs). Established history (18+ yrs). Oldest track record among peers (28 yrs). Established history (23+ yrs). Established history (16+ yrs). Point 3 Top rated. Rating: 5★ (upper mid). Rating: 5★ (lower mid). Rating: 5★ (bottom quartile). Rating: 4★ (bottom quartile). Point 4 Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Moderately Low. Risk profile: Low. Point 5 1Y return: 6.14% (upper mid). 1Y return: 6.13% (lower mid). 1Y return: 6.03% (bottom quartile). 1Y return: 5.90% (bottom quartile). 1Y return: 6.18% (top quartile). Point 6 1M return: 0.46% (top quartile). 1M return: 0.45% (lower mid). 1M return: 0.44% (bottom quartile). 1M return: 0.12% (bottom quartile). 1M return: 0.45% (upper mid). Point 7 Sharpe: 2.23 (upper mid). Sharpe: 2.13 (lower mid). Sharpe: 1.79 (bottom quartile). Sharpe: 1.75 (bottom quartile). Sharpe: 2.32 (top quartile). Point 8 Information ratio: 0.33 (upper mid). Information ratio: 0.45 (top quartile). Information ratio: -0.64 (bottom quartile). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 6.13% (bottom quartile). Yield to maturity (debt): 7.71% (top quartile). Yield to maturity (debt): 7.11% (lower mid). Yield to maturity (debt): 7.45% (upper mid). Yield to maturity (debt): 6.23% (bottom quartile). Point 10 Modified duration: 0.09 yrs (top quartile). Modified duration: 0.16 yrs (bottom quartile). Modified duration: 0.15 yrs (lower mid). Modified duration: 0.49 yrs (bottom quartile). Modified duration: 0.10 yrs (upper mid). Indiabulls Liquid Fund
PGIM India Insta Cash Fund
JM Liquid Fund
Aditya Birla Sun Life Savings Fund
Axis Liquid Fund
The above can be used as a guidance given the type of investor one is. The proposed asset allocation also gives a projection as to the expected annual return per annum and the expected variation in returns (annual standard deviation).
Let’s, for example, take the individual here is aggressive and hence the equity allocation to be 60%. So proposed investment allocations would be (for an investment of 10 lakhs):
Equity (60%) = 6 lakhs
Debt (30%) = 3 lakhs
Gold (10%) = 1 lakh
One should try and do some research to get a good scheme. Various rating agencies like CRISIL, Value research, Morningstar etc. provide funds ratings. Using these ratings and getting some top performing funds would ensure that we try and select good performing funds into the portfolio.
In the example,
Monitoring your investment is a critical step and one should review the portfolio at least once a quarter and rebalance at least once a year. Also, looking at scheme performance is also important and if there are performance issues one should replace the scheme with a better performing one (also taking into account the tax considerations).
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These are the basic steps to create an investment plan for any sum of money. Hope this gives some direction to create an investment plan for a secured future. Happy investing!