When Ankur Warikoo made money in penny stocks and got addicted

Parekh says that hybrid asset allocation funds cushions volatility and is useful when there is market correction.

Equity mutual funds are exceptional investment options for retail investors. While direct stock investors enjoy greater flexibility without certain investment constraints. The choice depends on individual preferences and risk tolerance.

Rebalancing an investment portfolio at specific periodic levels is more favourable than buying and holding because it offers a sustainable process that can approach the volatility and the upsides and downsides of the market unemotionally through a mathematical approach, according to Swarup Mohanty, CEO, Mirae Asset Investment Managers (India). Investors should review and rebalance their portfolios periodically, and rebalancing can help maintain the actual asset allocation closest to their risk profile, he said.

International funds, also referred to as international mutual funds, are essentially mutual funds that make investments in businesses that are based outside of the investor's home country. They go by the name of foreign funds as well.

We have the choice to hold a mishmash of stocks acquired with inadequate information, or a portfolio made up of the largest, liquid, profitable, actively traded, widely held stocks. It beats me why the sensible choice of holding an index doesnt appeal, compared to a poorly collated portfolio.

Simplifying your investments involves aligning them with your financial goals. The process of streamlining your investment portfolio can be time-consuming, as it requires several steps to initially declutter and subsequently consolidate your mutual fund holdings.

“There is a time when you need to ignore a particular sector, focus on others and this is that time. One has to ignore the IT sector now. In fact, I would say that the latest guidance from Infosys is too aggressive. I do not think they will have any growth.”

Avoiding common pitfalls is crucial for a successful investment journey. Here's a guide on mistakes to steer clear of in your first stock investment with a Demat account.

Multi-asset allocation funds stand out as a versatile investment option, suitable for those embarking on their investment journey and seasoned investors seeking diversification, says Chakrivardhan Kuppala, Co-founder and Executive Director at Prime Wealth Finserv.

“Investing in smallcaps is not an issue, but you come with the time frame of five years. If you come to the largecaps, assuming a three-year period, then smaller midcaps have to be for a longer period. Therefore, the money that comes for a longer term, we cannot deny it.”