Read in: 1min, Published On , 15 Nov 2016 By Hindustain Times
It's safer to balance a car than a bike.
Likewise, balancing a portfolio with multiple Mutual Funds is easier than just being dependent on one Fund.
BALANCE IS A MUST
All your money in Debt can mean ytu lose out on good returns. All your money in Equity can mean your portfolio becomes too volatile. You need a healthy balance between the two.
DIVERSIFY FOR BALANCE
Just like your four-wheeler, its important you invest in more than one MF The ideal portfolio should contain a mix of Equity, Debt, Balanced and Gold Funds.
VARIETY IS SPICE
Fund Houses have numerous types of Funds for precise reason. So ensure your portfolio has variety. It will add the much-needed spice in your financial life.
DIVERSIFY THROUGH EQUITY
Even with Equity Funds, there are certain Funds like Diversified Equity Fund that can balance your portfolio. These Funds aim to invest in different types of Stocks for balance.
Hybrid Funds also help you balance your portfolio by investing in both Equity and Debt. So start with these, but eventually increase the number of Funds you invest in.
When you have a balanced portfolio, you can overcome bouts of market volatility. For example, the Debt & Balanced Funds can give you returns even when Stock market falls.
Adiversified portfolio often gives higher returm in the long run because periodic losses are lower. Consistent returns, in fact, are the best benefit of such a diversified MF portfolio.
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