💨 Abstract

Building a diversified mutual fund portfolio is key to managing risk and achieving long-term financial goals. Diversification involves spreading investments across various asset classes, sectors, and geographies to reduce volatility and enhance returns. Key components include asset allocation based on risk appetite, sectorial and geographic diversification, and selecting funds with a good track record and low expense ratios. Planning starts with considering the investment horizon, selecting the investment mode (SIP or lumpsum), ensuring tax efficiency, and consulting financial advisors.

Courtesy: theprint.in