Many of us start investing randomly in NFOs or we start investing in sectoral , thematic funds or invest as per broker's advice. understanding the risk / return and investment philosophy of each fund is essential before we start investing in equity mutual funds.
It is very important to understand the nature of funds and follow a proper approach towards investing in Equity MF ( Equity MF Investment Approach)
1. You can start investing in well diversified large cap funds like HDFC Equity , Reliance vision, Franklin Prima Plus , HDFC Top 200 ,etc. These can constitute a major portion of your portfolio.
2. You can then think of diversifying with Flexi-cap or Mid- cap funds like Sundaram select mid cap, Reliance Growth , Franklin Flexi Cap , Birla Mid cap, Magnum Global , etc
3. You can add further spice by entering into sectoral funds..but unlike the diversified equity funds, these funds perform well only during business cycles favourable to that sector. So try to minimize exposure unless you are adventurous.
Those who seek extreme safety should always stick to well diversified equity funds and keep invested for a reasonable time frame.
It is not required that one needs to invest in all the good funds available. one needs to be choosy and limit the number of funds too.
It is very important to understand the nature of funds and follow a proper approach towards investing in Equity MF ( Equity MF Investment Approach)
1. You can start investing in well diversified large cap funds like HDFC Equity , Reliance vision, Franklin Prima Plus , HDFC Top 200 ,etc. These can constitute a major portion of your portfolio.
2. You can then think of diversifying with Flexi-cap or Mid- cap funds like Sundaram select mid cap, Reliance Growth , Franklin Flexi Cap , Birla Mid cap, Magnum Global , etc
3. You can add further spice by entering into sectoral funds..but unlike the diversified equity funds, these funds perform well only during business cycles favourable to that sector. So try to minimize exposure unless you are adventurous.
Those who seek extreme safety should always stick to well diversified equity funds and keep invested for a reasonable time frame.
It is not required that one needs to invest in all the good funds available. one needs to be choosy and limit the number of funds too.
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