Applying Pareto for financial planning Last week, we discussed the role of the Pareto Principle (80/20 rule), which suggests that around 80% of the outcomes or effects come from a relatively small portion (around 20% of inputs). Today, we review how the approach is evident in equity investing through a quick study of the top 10 large-cap mutual funds. First, let's use Pareto to establish some basic guidelines.  Investing 80% of your money into equity is more prudent during the early phase of your earning career. As you approach retirement, the numbers can be reversed, i.e. 80% of your funds

This was an article given to Divya Bhaskar, Ahmedabad (Feb 19, 2022) Context: We use Pareto ideas across our daily work, even in mental health.  For example, index trauma (covered in Module 6) is based on the 80/20 principle.  Other examples in daily life include equity portfolio planning and financial well-being. Please read the entire article below in English: The Pareto Principle, also known as the 80/20 rule, suggests that a significant portion, often around 80%, of effects come from a relatively small portion, usually around 20%, of causes. In simpler terms, focusing on a few key areas can often