Building a Resilient Investment Portfolio with Mutual Funds
by Admin
Evaluating the current global economic scenario, more and more investors are in search of the best option to develop a robust investment plan. One of the choices that should considered is mutual funds. They are also good as source of investment since investing in these vehicles can give a number of benefits like professional management, easy accessibility and most importantly, diversification.
Benefits of Mutual Funds
1. Diversification
Naturally, the powerful portfolio must be diverse; this is particularly true in the present economic context. Through mutual funds, investors can participate in various investments including stocks, bonds and cash equivalents as well as other money market instruments. Thus, if any of them starts performing poorly, it will not affect the value of a mutual fund significantly which can thereby minimize risk.
| Type of Asset | Description | Funds |
|---|---|---|
| Equity | Invests in shares of companies. | HDFC Equity Fund |
| Debt | Invests in government and corporate bonds. | SBI Debt Fund |
| Hybrid | Combines both equity and debt instruments. | ICICI Prudential Balanced Advantage Fund |
2. Professional Management
Of course, every powerful portfolio presupposes diversification, and, particularly, it is true in the framework of the latest economic shifts. Mutual funds allow the investors to invest in a number of assets such as stocks, bonds, and securities in use with cash investment. That is, since the fluctuation in the performances of individual holdings would not significantly affect the over-all portfolio, this also tends to lower risk.
| Fund Name | Fund Manager | Expense Ratio (%) |
|---|---|---|
| Aditya Birla Sun Life Tax Relief 96 | Mr. Ajay Garg | 1.85% |
| Nippon India Small Cap Fund | Mr. Dinesh Balachandran | 1.98% |
| Axis Bluechip Fund | Mr. Shreyash Devalkar | 1.75% |
3. Accessibility
Like for stocks, mutual funds are also easily available to the masses. Due to their differing minimum investment necessary, they let individuals with various economic statuses invest hence making it possible to create a portfolio that is not easily affected by a particular economic status
| Investment Type | Minimum Investment | Link to Screener |
|---|---|---|
| SIP | ₹500/month | Start SIP |
| Lumpsum | ₹1,000 | Invest Lumpsum |
Crafting Your Portfolio
To build a portfolio that can withstand economic downturns like the current one, it's important to focus on some few key factors. By investing in mutual funds which consider these factors, you can create a portfolio which is resilient and not only endures tough times but also prepared for the future.
For more information and tools to help you select the right mutual funds, visit our Mutual Funds Screener.
Conclusion
Concisely, the growth of mutual funds contributes considerably to the capability, professionally managed, and diversification of investment portfolio. In a way they can act as a good means of developing a strategy within an organisation for stability and forward progression in the midst of uncertain times.
Explore more on our website IpoTech to get started on building that investment portfolio today for better resilience through our Mutual Funds Screener.