Having decided on your career road map, you will know your present and future income growth. Above two factors, in turn, will enable you to know how much funds you will spare and when you will need the funds for purchase of the assets like car, flat, wedding, etc. You should know yourself and your character in terms of mental make up. If a fall in the market value of your investment makes you lose your sleep, equity shares should be a very small component of your portfolio. Investor, know thyself first .
Stock market is too expensive a place to find that out.
And finally, your portfolio, must be a mixed bag of fortune. Combination of several types of investment makes for diversification, spreads out your risks. Let us be clear that you are investing your savings so that the money so invested is available to you when you need it to spend it. It is Liquidity. Ideally, therefore, you might suggest, one's savings should be kept only in cash so that it is most liquid and available right away.