You've decided to invest in equity mutual funds. That's a good decision already made. The next question, which kinds and how much in each, is the one that trips most people up, so let's take it together. Tell us the money and a few honest answers, and we'll lay out a category split that fits your horizon and your nerves.
Even a small amount is enough for us to build a portfolio around.
Small caps can stay underwater for years, so at 3 to 5 years we keep them tiny or leave them out, to protect you. The longer your horizon, the more room mid and small caps get to do their work.
If you're careful, or this is shorter-horizon money, you get a cushion of low-volatility hybrid funds and lean on index and flexi-cap. If you're bold, we swap in a multi-cap core and a bigger mid and small-cap position. Both are valid, they just fit different people.
Past 5 or 6 funds, you're mostly buying the same stocks twice over. So we keep your list short, which means each fund actually earns its place, and your portfolio stays easy to hold.
