Diversified funds in India are specific types of mutual funds which aim at diversification of investments throughout multiple business sectors, irrespective of the market capitalization or size. These funds will aim to achieve capitalization for the long term via diversified investments that will help in enabling superior returns amidst adverse conditions in the market. These types of diversified mutual funds have comparatively lower risks if other types of funds are taken into account, such as small cap and mid cap funds. The fund managers of these funds will usually switch between large cap, small cap and mid cap stocks on the basis of prevailing conditions in the market. This will ensure that investors do not miss out on the best opportunities available in the market.
These funds make up a sizable part of overall financial planning for investors since diversified equity funds in India may help in generating handsome returns for accomplishing future objectives. They are slightly different from conventional tax saving mutual funds such as ELSS. Key aspects worth knowing Diversified funds in India offer wider exposure for investors to the markets. Multi cap funds are often perceived as diversified equity funds since they deploy investments throughout varied market capitalizations. They also save a lot of time as far as investors are concerned while helping clear prevailing confusion of choosing between various market capitalizations for investment purposes. The risks are well balanced in these funds and this is because small cap funds usually do well in the bullish scenario while falling market conditions mean that large cap funds will provide ample support for the portfolio of mutual funds and subsequent returns. Investors who possess thorough understanding of the equity markets and overall risk levels and those who possess moderate tolerance levels for risks, may consider investments in these types of funds. Diversified funds in India are classified into the following segments:
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
April 2022
Categories |