This Rakshabandhan, give your sister the mantra to increase money, not just protection but blessings of prosperity..

If you want to build wealth, it is most important that you stay in the market for a long time. Start early and keep investing continuously so that your money grows over time. Mutual funds make this journey easy because they offer different types of investment options. To build a good portfolio, it is important that you are present in the market all the time, no matter what the situation is.

Many investors panic and exit the market during fluctuations, due to which they lose the right opportunities. If you maintain an investment for a long time through mutual funds and create a balance in different categories, then the impact of market fluctuations is reduced. This strategy is the key to creating real wealth. This Rakshabandhan, do not just give money to your sister; also bless her with financial security.

Give her the Gurumantra that will never let her run out of money in the future. Shaili Gang, Product Head of Tata Asset Management, has given 6 such Gurumantras that can help you a lot in making money. Let's know about them in detail.

Build a core portfolio with flexicap and multicap funds
The midcap and smallcap segments have many niche industries, while largecap funds have more liquidity, which reduces losses during a recession. If you are unable to decide which fund to invest in, then flexicap and multicap funds are the right choice. These automatically create a balance in different market caps.

Keep sector funds in a satellite portfolio

Sector and thematic funds bring uniqueness to the portfolio. These funds invest in those sectors in which diversified funds have less exposure. Choose 2-3 top sector or thematic funds, which can give better returns in the medium and long term.

A combination of active and passive strategies
The combination of index funds (passive) and active funds balances the portfolio. In active funds, the fund manager selects the stocks, while in passive funds, investment is done according to the index. A mix of both gives you better protection and growth in different market phases.

Volatility control with hybrid funds
Balanced advantage or multi-asset funds are helpful in market fluctuations. These funds change the balance of equity and debt at the right time, so that investors do not exit the market in panic. In such funds, money remains invested for a long time, and growth catches up at the right time.

Also, keep factor strategy and gold-silver ETFs
Funds with momentum and quality factor strategies beat the index in the long run. Apart from this, also include gold and silver ETFs in the portfolio, as their correlation is low with equity and they work as a hedge against inflation and geopolitical risks.

This article has been prepared for educational and information purposes only. The views expressed in it are the personal views of the concerned expert. Consult your financial advisor or certified expert before investing in mutual funds or other investment products. Investments are subject to market risks and past returns do not guarantee future ones. Network18 will not have any responsibility or liability for any decision taken based on the contents of this article.

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