Is higher equity exposure good for the long-term horizon?
One needs to increase your savings rate and gain higher equity every year to the best of his ability. The investments can be done preferably via mutual funds. One can also consider a combination of higher equity and lower debt.
If one plans to sell his house on which he is having a loan and an EMI, it is assumed that it is an investment and he will be having a surplus of ₹15, 000 per month to add to his investment corpus.
Over the next year or even earlier, his personal loan will also be exhausted, which will further give an extra ₹16, 000 for increasing his investments. Also, the PF can be a part of your retirement corpus.
The total savings he has will be ₹39,000 per month, which is saved for 10 years will result in a principal amount of ₹46.8 lakhs and taking average earnings of 10%, the corpus will be ₹80 lakhs.
He needs to ensure that the savings are increased every year to meet his child’s education expenses as well for higher equity. With a similar savings rate in the next 5 years an additional corpus of ₹30 lakhs will be earned but is too short of his targets. He needs to make sure the funds realized from the sale of the property also get reinvested and that too can be part of his overall corpus. It will fetch him higher equity. 
In addition, he needs to increase his savings rate every year to the best of his ability. The investments can be done preferably via mutual funds and here he can consider a combination of higher equity and lower debt. Do consider higher equity exposure as you have a long-term horizon subject to your risk profile.
