In this type of portfolio we tend to follow an investment strategy that aims to balance risk and reward as per an individual who has low risk tolerance. We tend to diversify your portfolio by investing in six different types of funds namely, Gold funds, short term debt funds, dynamic asset allocator fund (Balanced advantage fund), midcap and smallcap funds, largecap funds and focused funds. All of these funds have different levels of risk and return, so each of them will behave differently over time.
In general, if you are able to invest in the funds suggested in the portfolio through the best wealth management company and are willing to give time of minimum 5 years then you can expect a return of 8-12%.
Gold funds are a very convenient way of investing in an asset where you won’t have to purchase gold in its physical form. Hence, getting yourself free from the fears of theft and the storage costs that come with it. It is one of the best funds that act as a cushion against the market collapse. If you keep gold mutual funds in your portfolio for more than 8 years then you can expect a significant return.
SHORT TERM DEBT FUNDS:
These funds will give your portfolio exposure to companies that have proven record of repaying there loans on time and have sufficient income to justify their borrowings. These funds are also tax-efficient if you hold them for more 3 years and they can also comfortably beat the bank-FDs.
DYNAMIC ASSET ALLOCATOR FUNDS
These funds will help you in diversifying your portfolio by investing in a mix of company stocks and FD-like instruments. These funds will keep changing their allocation between debt and equity based on market conditions in order to give consistent returns. If the market rises then they will book profit and if it falls then they will make more investments.
MIDCAP AND SMALLCAP FUNDS
Investing in such funds is mainly done with high returns in mind. Companies in these funds are chosen in such a way that has a capability to give a return in the long run and can become big companies in future. You can see losses in these companies from short to midterm.
Including these funds in your portfolio will give some much needed stability and a better capital appreciation in the long term as these funds typically parks your money in top-notch companies. If any economic downturn comes then these particular funds will resist the downfall and will help you give returns even in those bad days.
These are those types of funds where the fund manager invests money in those stocks which shows high conviction. This fund keeps the money in top companies but is limited to only 30. Due to low number of company stocks they take huge stake in those companies. They have a high probability of giving excellent returns in the short term as these funds keep money in handpicked companies.Follow Us: