|
Fund category
|
Equity
allocation
|
Rewards
|
Risks
|
Selection
|
|
Equity
Savings
|
30–40%
|
Moderate
risk, defensive, smoother NAV;
|
Lower equity
component limits long‑term growth; not suitable when strategy is to increase
equity exposure.
|
Not Selected:
Equity exposure is only ~30–40%, so it won’t meaningfully participate
in equity upside
|
|
Large Cap
|
Min ~80% in
large‑cap
|
Exposure to
stable, blue‑chip companies; lower volatility than mid/small cap; likely to
benefit first when FIIs return.
|
Concentrated
within large‑cap; can underperform in mid/small‑cap‑driven rallies.
|
Selected
Invests in stable, blue-chip companies → resilient during geopolitical
uncertainty.
Lower volatility vs mid/small caps.
Likely to benefit early when foreign
institutional flows (FIIs) return.
|
|
Flexi Cap
|
Min ~65% in
equity across market caps
|
Dynamic
allocation across large/mid/small; can capture upside in multiple segments;
historically strong multi‑year CAGR for top schemes.
|
More volatile
than pure Large Cap; performance depends heavily on fund‑manager discretion.
|
Selected:
Dynamic
allocation across large/mid/small → adapts to changing market conditions.
Captures
opportunities across segments (very relevant now due to sector rotation).
Historically
strong long-term CAGR in top funds.
- Slightly higher volatility
|
|
Mid Cap /
Small Cap
|
Min ~65% in
mid‑cap or small‑cap
|
High growth
potential; can outperform in strong bull markets.
|
Sharply
higher volatility and drawdown risk; more sensitive to sentiment and
liquidity shocks.
|
Not selected:
High
volatility and drawdown risk.
Very
sensitive to liquidity shocks and global sentiment.
In current
uncertain macro conditions, downside risk is elevated.
|
|
Thematic /
Sector
|
80%+ in
specific sector(s)
|
Can deliver
very high returns if sector tailwinds align.
|
High
concentration risk; dependent on single sector; can underperform badly if
sector corrects.
|
Not selected:
Concentration risk (single sector
dependency).
Requires precise timing—very risky in
uncertain global environment.
|
|
Focused /
Concentrated
|
30–40 stock‑heavy,
80%+ equity; deep concentration.
|
Potential for
high alpha if key picks outperform.
|
High
idiosyncratic risk; single‑stock or sector shocks can hit NAV sharply.
|
Not selected:
High idiosyncratic risk (stock-specific
shocks).
Limited diversification → higher downside in volatile
markets
|
|
Multi‑Cap /
Diversified
|
65%+ equity,
25%+ each in large/mid/small (SEBI‑mandated).
|
Broad
diversification across market caps. groww+1
|
More complex
portfolio; can behave like a “blended” equity mix with mixed risk‑return.
|
Not preferred
over Flexi Cap:
Flexi Cap
offers similar diversification but with greater manager flexibility;
Multi‑Cap is over‑prescribed and slightly less tactical.
|
|
Aggressive
Hybrid / Balanced Advantage
|
65–80%
equity, balance in debt.
|
Equity‑plus‑debt
mix; somewhat defensive.
|
Lower equity
exposure limits growth; debt component behaves like a bond portfolio.
|
Not selected: We are moving
away from low equity exposure hybrid structures;
|
|
Dynamic /
Balanced Advantage
|
Changes
equity‑debt mix dynamically (often 30–80% equity).
|
Can reduce
equity in downturns; smoother ride.
|
Strategy is
more “market‑timing”‑driven; can lag in sustained bull phases.
|
Not selected: We prefer fixed,
higher‑equity exposure (Large / Flexi Cap) rather than schemes that may
de‑risk their own equity automatically.
|
|
Multi‑Asset
Allocation
|
At least 3
assets, min 10% each; often equity + debt + gold.
|
Diversification
across asset classes; can reduce volatility.
|
Lower equity
exposure; structure is more complex for a pure equity‑churn objective.
|
Not selected: Diversification across equity, debt, gold → lowers volatility.
But reduces equity participation (not ideal
for growth objective).
|
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