Go for ‘Dal-Chawal’ funds – that’s the advise of Radhika Gupta, MD & CEO Edelweiss Mutual Fund. If you are wondering what Radhika means by dal chawal funds, the industry veteran explains in a post on X (formerly Twitter). According to Radhika Gupta, it is important to invest in broad-based funds, than MFs that have narrow sector focus.
In her post on X, Radhika wrote, “I recently saw a portfolio of an investor with a 27,000 monthly SIP.Across 31 funds. 15 were narrow sectoral ones. 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!” “I mean stuff that is not narrow themes. Hybrid funds, diversified equity funds, active or passive doesn’t matter. Point is broad based all weather stuff,” she said.
When a user asked her to explain what she means by dal chawal fund, Radhika said, “What’s a dal chawal fund? Broad based funds that are all weather and span a range of sectors. Balanced advantage and aggressive hybrid types. Flexi, multi, large and mid, broad based 250-500 index types. Forever funds. Active or passive doesn’t matter – the point is not a narrow theme based fund that works in one cycle and not in the next.”
Also Check | SIP Calculator: How To Be Become A Crorepati With Systematic Investment Plans – Explained
With the Indian equity benchmark indices, BSE Sensex and Nifty50, hitting record lifetime highs, many first time investors are also looking to enter the market. Mutual Fund SIPs or Systematic Investment Plans are often seen as a relatively safer way to earn returns from the market.
However, experts are of the view that your investment portfolio should not put all eggs in one basket. Even when investing in mutual funds, it’s wise to look at a fund that is more diversified so that the risks are evenly balanced.
In her post on X, Radhika wrote, “I recently saw a portfolio of an investor with a 27,000 monthly SIP.Across 31 funds. 15 were narrow sectoral ones. 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!” “I mean stuff that is not narrow themes. Hybrid funds, diversified equity funds, active or passive doesn’t matter. Point is broad based all weather stuff,” she said.
When a user asked her to explain what she means by dal chawal fund, Radhika said, “What’s a dal chawal fund? Broad based funds that are all weather and span a range of sectors. Balanced advantage and aggressive hybrid types. Flexi, multi, large and mid, broad based 250-500 index types. Forever funds. Active or passive doesn’t matter – the point is not a narrow theme based fund that works in one cycle and not in the next.”
Also Check | SIP Calculator: How To Be Become A Crorepati With Systematic Investment Plans – Explained
With the Indian equity benchmark indices, BSE Sensex and Nifty50, hitting record lifetime highs, many first time investors are also looking to enter the market. Mutual Fund SIPs or Systematic Investment Plans are often seen as a relatively safer way to earn returns from the market.
However, experts are of the view that your investment portfolio should not put all eggs in one basket. Even when investing in mutual funds, it’s wise to look at a fund that is more diversified so that the risks are evenly balanced.