Chart of the Day| How asset allocation in mutual funds can affect returns
Despite having the flexibility to increase their exposure to smaller stocks, Flexi Cap Funds often prefer to concentrate on market heavyweights
Mutual funds
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Retail investors are often advised to either learn how to pick stocks based on fundamental analysis or let professional fund managers handle the decision-making process. However, this approach presents another challenge: selecting the right fund. Advisors frequently guide investors to choose funds based on age and risk profile, often recommending investments in funds focused on blue-chip frontline stocks or small-cap stocks.
Some advisors adopt a balanced approach, suggesting that investors allocate their money across various schemes, including
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