Aeterna Money Plan · free

How much should you invest, and where?

A plan built around your goals, your finances and how you handle market falls: the mix of equity, debt and gold for each goal, what to change in what you hold today, how much to invest each month, and the chance of reaching each goal, tested on real Indian market history since 2007.

About 6 minutes. Everything stays in your browser; nothing is sent to us unless you choose to share your summary.

Common questions

What is the right asset allocation for me?

It depends on when you need each part of your money and how much risk your finances and nerves can take. Money needed within 3 years holds no equity; money for 10 years or more can hold mostly equity if your income, emergency fund and EMIs allow it. The planner works this out goal by goal.

What is the difference between risk tolerance and risk capacity?

Tolerance is how comfortable you are with falls; capacity is how much of a fall your finances can absorb without derailing your goals. Someone comfortable with risk but with large EMIs and no emergency fund has low capacity. A sound plan follows the lower of the two.

Where should I keep my emergency fund?

Somewhere safe and quick to withdraw: a liquid fund, or for most of it an arbitrage fund if you are in the 20% or 30% tax slab, because arbitrage funds are taxed as equity. Keep a month or two in a liquid fund for instant access.

Should I count my house in my portfolio?

Not the home you live in: you will not sell it to fund a goal. Its EMI still matters, because it reduces what you can invest each month. Other property is counted, but as an illiquid holding.

How often should I rebalance?

Once a year, or when an asset class drifts 5 percentage points or more from target. Redirecting new SIPs is the cheapest way; switching costs tax and sometimes exit loads.

How the Money Plan works

Foundations first. Expensive debt is cleared before investing; an emergency fund of 6 months' expenses and EMIs is built (9 if your income varies, 2 more with dependants on one income, 12 in retirement); term and health cover are checked.

Two risk scores. Your answers give your risk tolerance; your finances give your risk capacity: years until you stop working, EMIs as a share of income, your surplus, how steady your income is, who depends on you, and age. The lower of the two sets your profile, and with it the most equity your long-term money holds: 25% for the most cautious, up to 85% for the boldest.

One mix per goal, from real data. We replayed thousands of sequences of real Indian market months since 2007 (equity, debt and gold together, in 12-month blocks so crashes and recoveries stay intact) and measured, for every horizon and equity share, the chance of ending below the money put in. Each goal holds the most equity whose chance of loss stays within your profile's limit, and never more than 15% at 3 years, 35% at 5 years or 55% at 7 years. Money needed within 3 years holds no equity. Every year, each goal's money is moved towards safety as its date approaches.

Monthly amounts that hold up in bad markets. Each goal's SIP is the amount that reached its target in 3 out of 4 simulated markets (you can choose 1 in 2 or 9 in 10), not a single assumed return, which would only work half the time. Retirement is sized from the expenses you expect in retirement, for the years to your life expectancy, still growing with inflation. Future EPF and NPS contributions count towards it.

Rebalancing steers new money into whatever is underweight first, because selling costs tax and exit loads; switching is suggested only when an asset class is more than 10 percentage points off target. EPF, PPF and NPS cannot be moved and are left as they are.

Tested. The model is checked on 3,000 simulated investors of every age, income and risk appetite (allocations must add up, never invest more than the surplus, never more equity for shorter goals or tighter finances), and on every start month since 2007: plans built for a 3-in-4 chance reached their targets in 78 to 98% of real start months.

Indicative and educational only: not investment advice, a recommendation of any scheme, or a guarantee of returns. Simulations replay past market months; the future can be worse. Aeterna Wealth Private Limited is an AMFI-registered mutual fund distributor (ARN-317889), not a SEBI-registered investment adviser. Insurance and loan points are general checks; please review them with a qualified professional.