How should I allocate my money to meet my retirement goals? | Tech Reddy

Names withheld on request

You are in a very good position financially in the real prime of your life. You need to think about the segmentation between investing in your local market vs the Indian market and the segmentation in each of these markets. To begin with, you should deliberately decide on these allocations and maintain them for years to come.

In general, you can assume that currency depreciation against the INR against the Euro is normal for a rising currency. That means your investment in the Indian debt market or deposits) should be kept low compared to growth assets like equities. The advantage of the European market is the general stability and relative strength of its currency. However, the Indian market has potential for higher returns, although some of those returns will be lost due to currency depreciation.

Separately, just because your financial goals are India-centric, doesn’t mean you have to invest in India. You can send money to yourself at a convenient time to take care of needs like a home or other purchases.

You may consider splitting your investment 50% each between Indian and foreign investments. You can have an advisor help you with your portfolio in India or France or both markets.

Srikanth Meenakshi is a co-founder of Prime Investor.