2024-07-07 19:20:11
New Delhi: Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, has advised investors to invest in ‘dal-chawal’ funds. She believes that investors should invest in mutual fund schemes that are spread across diverse sectors. Not in funds that are focused on only one sector. Radhika Gupta has explained the meaning of dal-chawal funds in a post on the social media platform X. She wrote, ‘I recently saw an investor’s portfolio. It had a monthly SIP of Rs 27,000. This SIP was divided into 31 different funds. Of these, 15 funds were such that invest in only one sector. This can be dangerous at such a time, because you are filling your portfolio with funds that are focused on only one sector. Remember, 80% of your portfolio should be ‘dal-chawal’ funds!’
What is the meaning of dal-rice funds?
Radhika further explains, ‘I mean funds that are not restricted to any one sector. This can include hybrid funds, diversified equity funds, active or passive funds. The important thing is that these funds perform well in every season.’
When a user asked her to elaborate on the ‘dal-chawal’ fund, Radhika said that ‘dal-chawal’ funds mean funds that invest in different sectors. Which perform well in every season. This can include balanced advantage and aggressive hybrid funds. Flexi cap, multi cap, large and mid cap and broad based 250-500 index funds are also good options. Active or passive fund does not matter – the important thing is that this fund should not be focused on only one sector which performs well at the same time.
What things do investors need to keep in mind?
The major indices of the Indian stock market BSE Sensex and NSE Nifty have reached their highest level. Due to this, many new investors are also thinking about investing in the stock market. Mutual fund SIP or Systematic Investment Plan is considered a safe way to earn returns from the stock market.
However, experts believe that one should not put all eggs in one basket while investing. While investing in mutual funds, one should choose a fund that invests in diverse sectors so that the risk can be reduced.