Edelweiss MD and CEO Radhika Gupta has once again taken to social media to guide followers on safely investing in mutual funds.
In a series of posts on X, formerly Twitter, she advised followers to ensure “80 per cent” of their portfolios comprise “dal-chawal funds.”
Here's what 'dal-chawal funds' are and why to invest in them:
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“A danger in these times is to fill your portfolio with narrow ideas that ideally are satellite allocation. Remember, 80% of the portfolio should be “dal-chawal funds!”, said Radhika
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When a follower asked what such funds would comprise, she added, “I mean stuff that is not narrow themes. Hybrid funds, diversified equity funds, active or passive, it doesn’t matter. The point is broad-based, all-weather stuff.”
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As an example, she pointed to Balanced advantage and aggressive hybrid type funds, including flexi, multi, large and mid, broad-based 250-500 index funds, calling these “forever funds”.
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'Dal-chawal' funds keep your portfolio secure throughout different market cycles. Diversity in the fund ensures that if one sector fails, the entire investment isn't compromised.
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She mentioned that sector funds rarely beat the market and thus one should not put all their eggs in one basket, but rather keep 80% of their portfolio as 'dal-chawal' funds.