Prajna Capital - An Investment Guide

An increasingly common and rather disturbing trend in many investments is the absence of a solid 'core' portfolio. In recent times, we have met several investors (most were new to investing in mutual funds) whose investment portfolios were constituted of only thematic and sectoral funds. To further complicate matters, these investments were made in new fund offers launched at a time when markets were surging northwards. Expectedly, such portfolios are in dire straits at present. What is “The core portfolio” By the core portfolio, we are referring to a mix of investment avenues that is capable of delivering an enduring performance across market cycles. For instance, in the mutual funds segment, well-managed diversified equity funds, balanced funds and monthly income plans with proven track records could form the core portfolio. Of course, the investor's risk profile and investment objectives would play a part in determining the core. Once this core is in place, the investor...