Is it okay to keep 50% of my portfolio in crypto if I have company ESOPs as a backup?

Question

I earn a high salary and keep my expenses low, so my fixed commitments are only 30% of my income.

Because I have a lot of investable cash, my portfolio is highly aggressive: 50% in Crypto, 30% in cash savings, and 20% in Index Funds.

I justify this extreme risk because I believe in tech, and I assume my company ESOPs will eventually be worth millions.

Is this a safe way to look at asset allocation?

Mohan Gupta · Accepted Answer

Using company ESOPs as an excuse to over-leverage risk in your primary portfolio is a classic behavioral error. ESOPs are great, but they are highly concentrated and completely illiquid. If your company struggles, both your primary income and your ESOP value could crash at the exact same time.

Pairing that massive concentration risk with a portfolio that is 50% in crypto means your wealth is built on a very fragile foundation. Wealth is ultimately determined by how you invest, and your asset allocation needs to reflect maturity and resilience, not just pure aggression.

Consider a much more balanced approach, like keeping 60% in Mutual Funds, 15% in Debt Funds, 10% in Liquid Funds, and maybe 5% in Gold. This kind of spread protects you against volatility because you understand that markets move in cycles.

Even if you want to keep some crypto, it should be a tiny fraction of your net worth, not the majority. Treat your ESOPs as a lottery ticket, not a safety net, and build your core portfolio with boring, diversified assets that will actually protect you when the tech sector faces a downturn.

Disclaimer: All information shared above are strictly for educational and informational purposes only. It should not be construed as financial or investment advice.

Is it okay to keep 50% of my portfolio in crypto if I have company ESOPs as a backup?

More from Mohan Gupta