Is your Equity Mutual Fund Team Complete? Find Out
Most investors make the mistake of having just one or two schemes in their equity mutual fund portfolio. This prevents them from realizing the full potential of their investments. Just like a winning team needs good players in a variety of different areas, similarly in an equity portfolio, there should be differing schemes to cater to different needs and benefit from varied market scenarios.
How should one go about building such a portfolio?
• While there are a large number of equity schemes to choose from, an investor should start with a group of equity schemes which have sufficiently differing styles of investing. Markets might favour different styles of investing at different points of time. By being sufficiently diversified and being invested in different styles, a portion of your portfolio would always be doing well in a given market scenario.
• One could also look at an equity scheme which provides benefits beyond generic equity investment - for example tax benefit under Section 80C of Income Tax Act, 1961.
Happy Investing
Most investors make the mistake of having just one or two schemes in their equity mutual fund portfolio. This prevents them from realizing the full potential of their investments. Just like a winning team needs good players in a variety of different areas, similarly in an equity portfolio, there should be differing schemes to cater to different needs and benefit from varied market scenarios.
How should one go about building such a portfolio?
• While there are a large number of equity schemes to choose from, an investor should start with a group of equity schemes which have sufficiently differing styles of investing. Markets might favour different styles of investing at different points of time. By being sufficiently diversified and being invested in different styles, a portion of your portfolio would always be doing well in a given market scenario.
• One could also look at an equity scheme which provides benefits beyond generic equity investment - for example tax benefit under Section 80C of Income Tax Act, 1961.
Happy Investing
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