It is usually preferable to have a mix of active and passive funds in your portfolio. However, passive funds may provide a more straightforward and affordable option if you struggle to choose the best actively managed funds or assess fund managers.
If 50–60% of your net worth is made up of Rs 1.5 crore.
The funds should be dispersed over three years. This strategy can help reduce the emotional risk associated with making a sizable investment all at once, particularly if the market drops by more than 10% shortly after you make the investment.
If only 10–15% of your whole net worth is made up of Rs 1.5 crore.
To spread the investment, think about a shorter period of six months to a year.
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Equity is undoubtedly a suitable asset type because you can keep your money invested for a period of 12 years. To maximize gains, you can invest 20–50% of your money in a combination of mid-cap, small-cap, and even micro-cap funds. Investing a sizeable amount in large-cap funds is also crucial. Your portfolio can become more stable with these large-cap assets, especially when the market is volatile.
