How to Diversify Your Balanced Mutual Fund Portfolio
Antara Bhattacharyya
Mix Equity and Debt Funds :Combine equity and debt mutual funds in suitable proportions to balance growth potential and stability across varying market conditions.
Add Sectoral and Thematic Exposure: Include sector-specific or thematic funds to capture high-growth opportunities, while keeping them within a small portion of your portfolio.
Explore Hybrid Fund Categories: Diversify within hybrid options, aggressive, conservative, and dynamic asset allocation funds, to manage risk and returns effectively over time.
Invest Across Market Capitalizations: Balance large-cap, mid-cap, and small-cap funds for steady performance, capital appreciation, and long-term wealth creation across market cycles.
Review and Rebalance Regularly: Monitor your fund performance periodically, and rebalance allocations to maintain your desired risk-reward ratio and portfolio diversification.