How to Diversify Your Balanced Mutual Fund Portfolio in 2025

1. What does diversification mean in a mutual fund portfolio?
Diversification means spreading money across different types of funds so that no single market fall hurts the portfolio.

2. How much equity and debt should a balanced mutual fund portfolio have in 2025?
A moderate mix in 2025 can be approximately 60% in equity funds and 40% in debt funds, striking a balance between growth and safety.

3. Why is rebalancing important in mutual fund investing?
Rebalancing maintains the original mix of equity and debt, helping to control risk when markets rise or fall unevenly.

4. What role do SIPs play in building a diversified portfolio?
SIPs enable small, regular investments that average market costs over time, thereby reducing the risk of poor timing.

5. Should global mutual funds be part of a balanced portfolio?
Yes, global funds add exposure to foreign markets, helping reduce dependence on the Indian market for returns.