How to manage your mutual fund portfolio? Here are 4 ways
Live MintHave you ventured into mutual fund investments? Below are several fundamental components of a mutual fund investment approach that one may use to manage mutual fund portfolios effectively: Focus on diversification: Are you familiar with the analogy of “Don't Put All Your Eggs in One Basket”? In a mutual fund portfolio, diversification is akin to having multiple baskets of investments, each serving a different financial objective. Within the realm of mutual funds, your investments represent the “eggs,” while asset classes serve as the “baskets.” By allocating your funds across various asset classes such as stocks, bonds, and cash, you mitigate the risk associated with any one asset class encountering a decline. This enables them to consider allocating a larger portion of their investment to equity mutual funds, which present the opportunity for superior long-term growth, despite their associated higher risk.
History of this topic
Discover Related
