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Investment in mutual funds requires diversification too. Below is a sample diversification

  • Large cap oriented funds - 40%
  • Mid and small cap oriented funds - 15%
  • Balanced funds - 25%
  • Bond funds - 20%

This way we have a good exposure to large cap funds which can give us good growth potential and we have a decent exposure to balanced funds and bond funds to ensure that we do not suffer huge losses in case of a market turmoil

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15y ago

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