Finally, investors should also keep in mind that banking is also very popular amongst
diversified equity oriented funds.
Not exact matches
Dear Jacob, You may select 3
funds —
Equity diversified, Mid-cap
oriented and a Balanced
fund.
Sector
oriented funds like «Banking
funds» are highly risky, you can invest in them if you understand the banking industry well, else invest in
diversified equity or mid-cap
funds.
If you have already constructed a good MF portfolio with core
funds (like a large cap,
diversified equity fund, mid / small cap
fund), you may consider sector
oriented funds to add to your portfolio.
You may consider either one
diversified equity fund (or) one
equity oriented balanced
fund.
You may consider a balanced
fund,
diversified equity fund and one mid-cap
oriented fund, and their respective liquid debt
funds.
As the vast majority of investors choose the conventional route of active management through mutual
funds (the second half of the book is a stinging critique of the shortcomings of active management), the author says that constructing a well -
diversified,
equity -
oriented, passive portfolio is an unconventional investment strategy but provides the best chance of success.
For example — If you have a two year old kid and are planning for his / her college education, it is prudent to invest in a good
diversified equity fund or a mid-cap
oriented fund than in a children MF plans.
In the case of growth
oriented investments, you can consider
equity funds (
diversified and tax saving
funds) and
equity shares where return of at least 15 per cent is expected.
If you have a time frame of 8 - 10 years till your child attends college, you can consider investing in
diversified equity funds, debt -
oriented balanced
funds or
equity -
oriented balanced
funds.