There's no such thing as an ideal mutual fund portfolio that can suit the needs and risk appetite of each and every individual. While there is no dearth of good mutual fund schemes in the market today, building a portfolio depends on the preferences and objectives of each individual. The factors that come into play include - age of the investor, risk appetite, time at hand to let the investment grow, need for money - immediate or latter - and more importantly, the purpose for making such an investment.
The model portfolio that we have put together here for our readers should thus not be construed as the final word. Investors would do well to consider these portfolios as ballpark models and develop their own portfolio on similar lines, based on their own financial preferences and goals.
Given the diversity in the risk appetite of investors, we have designed three model portfolios - - Aggressive, Moderate and Conservative. Each incorporates a different genre of mutual fund schemes to suit the varying needs.
AGGRESSIVE PORTFOLIO….
This is for those who are young, not only at heart but also with age, and have begun to earn but do not share a plethora of financial responsibilities. They are people who can afford the 'invest and forget' attitude, aren't scared of frequent market turbulences and are determined to get the most out of the equity markets.
The finest picks from the mid- and multi-cap segments blend into an aggressive mutual fund portfolio. The model portfolio has nevertheless been hedged to meet tough times by infusing a small percentage of gold. This portfolio can yield fruit, provided, the investor gives it enough time to ripen.
MODERATE PORTFOLIO…
Growing older, but still ready to take some risk with finances. Have financial responsibilities, but can part with a small percentage of savings to let it grow in safer havens…
A moderate portfolio blends the safety of large cap schemes without compromising on occasional opportunities thrown open by a mid-cap rally. The portfolio is hedged to face uncertainties through optimum allocation to balanced scheme and gold, which is considered to be the best hedge against inflation and equities.
CONSERVATIVE PORTFOLIO…
You want to participate in the wealth creation spree of the capital markets, but are scared to venture out. Worried that the catastrophe of 2008 will repeats itself ? With retirement age drawing nearer, you wish to make some decent earnings for the sunset years, but cannot afford the embedded risk of the equity market…
The conservative portfolio blends in the safety of the equity-oriented balanced and debt-oriented monthly income schemes and providing adequate hedge through gold. It also makes sure that you do not lose out on opportunities in the equity market by exposing a small percentage of investment to relatively safe, large-cap schemes.
-----------------------------------------------------------------
Also, know how to buy mutual funds online:
Invest in DSP BlackRock Mutual Funds Online
Invest in Reliance Mutual Funds Online
Invest in HDFC Mutual Funds Online
Invest in Sundaram Mutual Funds Online
Invest in Birla Sunlife Mutual Funds Online
Invest in IDFC Mutual Funds Online
Invest in UTI Mutual Funds Online
Invest in SBI Mutual Funds Online
Invest in L&T Mutual Funds Online
Invest in Edelweiss Mutual Funds Online
