ETMarkets MF Talk: Plan to invest Rs 10 lakh in Modi 3.0? Keep 40% in mid & smallcap fund & 20% in largeca

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Key Points

Assuming a time horizon of more than 5 years and deployment through a 12-month STP route, the ideal allocation would be 40% towards Mid and small-cap funds, 20% towards passive large-cap oriented funds, and 40% towards a flexi-cap fund, says Harsh Gahlaut, Co-founder and CEO, FinEdge...

In an interview with ETMarkets, Gahlaut said: A smarter and risk-mitigated approach would be to deploy systematically through the SIP/STP route while investing, Edited excerpts:..

As the India growth story unfolds in the future, mutual fund investors would benefit from a well-diversified portfolio with the risk aligned to the investment horizon...

Some things investors should avoid from this perspective is trying to time the market, any knee jerk reactions based on emotions, diverging from long term asset allocation based on events and avoiding taking informed risk..

Contrary to popular belief, the primary driver for wealth creation is not the selection of funds but the ability to remain invested across a well-diversified portfolio and informed risk based on the investment horizon...

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