Yes, that has to be taken care of. I normally feel comfortable with around 30% in small cap, and well diversified among various fund houses to ensure at least average return. In the present circumstances, my decision so far is to pause the new investments, which will be resumed when there is significant correction (20-30%). But, no redemption. If the money is required, when market is down I will redeem debt funds, balanced advantage funds and then large cap if required. So far,I never had to go till large cap funds’ redemption. In all the cases, only debt and balanced advantage and balanced funds I had to redeem at the most ( in my journey of two decades with mutual funds). I rely on them a lot. My policy so far is be highly diversified in mutual funds as I am expecting here average return with minimum risk and do not watch it daily.On the contrary, in stocks,I believe in being highly concentrated watching every event and every movement as far as possible, as the expectation is high reward with the high tolerance for risk.
| Subscribe To Our Free Newsletter |
