A look at how to build a well-balanced mutual fund portfolio in 2023
According to Kalpesh Ashar of Full Circle Financial Planners investors should stick to good pedigree and reputed fund houses for their investment. He added that investors should also do due-diligence on the team managing the fund.
2022 was an eventful year for the equity markets. At the start of the year itself, there was an omicron wave of COVID-19 that plagued the nation. Just as we were recovering from the pandemic, the Russia-Ukraine war dawned upon the world, as a result of which there was a lot of uncertainty and massive global inflation.
Amidst all of this, the Indian market stood tall and stood resilient because of strong domestic demand. The Indian markets gave a return of 5 percent for 2022 and outperformed the global peers. So, as we step into 2023, what strategy should mutual fund investors apply? How many funds should they pick?
According to Kalpesh Ashar of Full Circle Financial Planners, investors should stick to good pedigree and reputed fund houses for their investment. He said investors should also do due diligence on the team managing the fund.
"Many people would like to be attached to a fund house which has got a good pedigree, a good reputation, and is already established, so investors should follow that. Apart from this, many people tend to overlook who are the people behind the scene in that fund house. So the most important thing is investors should find people who are good trustees in the AMCs and the team which is going to manage the fund because they are the ones who are handling your money," Ashar said.
"Secondly, investors should not have bias. For instance, some people say I have a banking account with a particular bank, so why not even have the same mutual fund AMC to manage my money? That becomes a bias. So the bias should be removed. Investors should stick to fund houses that always follow its benchmarks. Whatever is the benchmark, the moment it deviates or starts deviating regularly, I think that is a red flag," Ashar added.
Watch the video for entire conversation.
First Published: Jan 5, 2023 5:41 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Prajwal Revanna Sexual Assault Case: Activist raises concerns over political interference, delayed investigation in the matter
Apr 30, 2024 10:17 PM
Lok Sabha Election 2024: Baramati election outcome will decide the future of Pawar dynasty, says expert
Apr 30, 2024 10:08 PM
Lok Sabha elections 2024: Baramati to Mainpuri, key battles in phase 3
Apr 30, 2024 7:01 PM