How to build Mutual Funds Portfolio?<\/p>\n
<\/iframe><\/p>\n<p>How to build Mutual Funds Portfolio?<\/p>\n<p>How to build Mutual Funds Portfolio<br \/>\nBuilding a portfolio of mutual funds is similar to building a house: There are many different kinds of strategies, designs, tools and building materials; but each structure shares some basic features.<br \/>\nTo build the best portfolio of mutual funds you must go beyond the sage advice, \u201cDon\u2019t put all your eggs in one basket:\u201d A structure that can stand the test of time requires a smart design, a strong foundation and a simple combination of mutual funds that work well for your needs.<br \/>\nUse a Core and Satellite Portfolio Design<br \/>\nBefore building begins, you will need a basic design\u2014a blueprint\u2014to follow. A common and time-tested portfolio design is called Core and Satellite. This structure is just as it sounds: You begin with the \u201ccore\u201d\u2014a large-cap stock fund\u2014which represents the largest portion of your portfolio and builds around the core with the \u201csatellite\u201d funds, which will each represent smaller portions of your portfolio.<br \/>\nUse Different Types of Fund Categories for the Structure<br \/>\nWith a large-cap stock fund as your core, different types of funds\u2014the \u201csatellites\u201d\u2014will complete the structure of your mutual fund portfolio. These other funds can include mid-cap stock, small-cap stock, foreign stock, fixed income (bond), sector funds and money market funds.<br \/>\nKnow Your Risk Tolerance<br \/>\nBefore choosing your funds, you need to have a good idea of how much risk you can tolerate. Your risk tolerance is a measure of how much fluctuation (a.k.a. volatility\u2014ups and downs) or market risk you can handle.<br \/>\nDetermine Your Asset Allocation<br \/>\nOnce you determine your level of risk tolerance, you can determine your asset allocation, which is the mix of investment assets\u2014stocks, bonds, and cash\u2014that comprises your portfolio.<br \/>\nThe proper asset allocation will reflect your level of risk tolerance, which can be described as either aggressive (high tolerance for risk), moderate (medium risk tolerance) or conservative (low-risk tolerance). The higher your risk tolerance the more stocks you will have in relation to bonds and cash in your portfolio; and the lower your risk tolerance, the lower your percentage of stocks in relation to bonds and cash.<br \/>\n\u00a0<br \/>\nLearn How to Choose the Best Funds<br \/>\nNow that you know your asset allocation, all that remains is choosing the best funds for you. If you have a broad choice of mutual funds you begin by using a fund screener or you may simply compare performance to a benchmark. You\u2019ll also want to consider important qualities of mutual funds, such as fund fees and expenses and manager tenure.<br \/>\n\u00a0<br \/>\nThe old way of asset allocation was \u201cinvest for your age,\u201d where your age is a number of bonds in your portfolio. For example, if you are 40 years old, your asset allocation would be 40% bonds and 60% stocks. Today, people are living longer so this asset allocation strategy is not as valid as it once was.<br \/>\n\u00a0<br \/>\nFor more on building a portfolio of mutual funds, see these sample portfolio designs: Aggressive Mutual Fund Portfolio Sample, Moderate Mutual Fund Portfolio Sample, and Conservative Mutual Fund Portfolio Sample.<br \/>\nPORTFOLIO CAN ALSO BE CLASSIFIED AS:<br \/>\na.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Growth Fund: \u2013<br \/>\nThe Fund invests 85 % in stocks and 15% in Debts. The main objective is to provide long-term capital appreciation.<br \/>\nIncome Fund:-<br \/>\nThe fund invests 85 % in Debt & 15% in stocks. The Main objective is to Provide Regular Income.<br \/>\nBalanced Fund:-<br \/>\nThe fund invest 50-60 % in stocks & 40-50% in debt instruments. The Main Objective is to Provide long-term growth of Capital & Regular Income.<br \/>\nLiquid Funds:-<br \/>\nThe fund invests 100% in Government and Public sector bonds, Money market instruments & Corporate debt.<br \/>\nThe main objective is to provide an attractive rate of return whole emphasizing Capital preservation and liquidity.<br \/>\nGilt Fund:-<br \/>\nThe fund invests 100% in State\/Central Government securities. The main objective is to provide risk-free returns & liquidity.<br \/>\nSector Fund:-<br \/>\nThe fund invests 100% in individual sector stocks. The main objective is to provide growth of capital over a period of time.<br \/>\nTax saving Schemes:-<br \/>\nThe fund invests 100% in stocks. The main objective is to provide Capital Appreciation. Units in this scheme are subject to lock-in period of 3 years from the date of allotment and also rebate of 20% is allowed under section 88 of IT act.<br \/>\nIndex Funds:-<br \/>\nIndex schemes are a type of mutual fund in which the portfolio weight for each stock will be similar to the index, which they are mirroring, like BSE Sensex or the NSE 50.<br \/>\nThe portfolio of these schemes will consist of only those stocks that constitute the index.<br \/>\nIndex funds are expected to provide a rate of return over time that will approximate or match, but not exceed, that of the market, which they are mirroring.<\/p>\n<p>How to build Mutual Funds Portfolio?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How to build Mutual Funds Portfolio? How to build Mutual Funds Portfolio? How to build Mutual Funds Portfolio Building a portfolio of mutual funds is similar to building a house: There are many different kinds of strategies, designs, tools and building materials; but each structure shares some basic features. To build the best portfolio of…<\/p>\n","protected":false},"author":1,"featured_media":1248,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[665],"tags":[96,112,110,91,115,94,46],"class_list":["entry","author-admin","post-993","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-importance-of-investment","tag-benefits-of-mutual-fund","tag-get-ahead-financially","tag-invest-for-your-child-future","tag-mutual-fund-advisor-distributor-in-india","tag-tax-saver-mutual-fund-sip","tag-the-consequence-of-delay-in-investing","tag-why-should-we-invest-in-mutual-fund"],"_links":{"self":[{"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/posts\/993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/comments?post=993"}],"version-history":[{"count":4,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/posts\/993\/revisions"}],"predecessor-version":[{"id":2384,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/posts\/993\/revisions\/2384"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/media\/1248"}],"wp:attachment":[{"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/media?parent=993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/categories?post=993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/tags?post=993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}