Nifty crosses 23,000 mark after a month: Should mutual fund investors stay invested or rebalance?
Nifty 50 crossing the 23,000 mark once again after a month, a mutual fund expert recommends that for investors looking for long-term wealth creation and have a stomach for equity market volatility, large and midcap funds / multicap funds / flexicap funds would be a good bet.
“Large and mid-cap funds, multi-cap funds, or flexi-cap funds — for investors looking for long-term wealth creation and who can stomach equity market volatility, these funds would be a good bet, as they provide a portfolio mix across market capitalizations that helps reduce the impact of sharp gyrations in any particular segment of the market,” says Suresh Soni, CEO of Baroda BNP Paribas Asset Management.
The expert also recommends that for such investors, where the recent 10% drop has brought the realization that equity investments can go up and down, but who still want a core of equity holdings for its status as the best-performing long-term asset class in India, hybrid equity schemes or balanced advantage funds would definitely be something to carefully consider. And for investors who believe in the dictum, “Don’t put all your eggs in one basket,” a diversified mix of multiple asset classes with low correlation to each other may be a preferred option.
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