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Simplify investing: Allocate bulk of core portfolio to broad index fund

These index funds eliminate the complexity of selecting individual schemes. Investors do not have to worry about how much to put into various market caps

Post runup, expect more modest returns from infrastructure funds

Altogether 22 infrastructure schemes manage assets worth Rs 41,912 crore.

Go for money market funds with a large AUM and low expense ratio

MMFs invest in fixed-income instruments maturing in less than one year, minimising interest-rate risk

Business and economic cycle funds: Dynamic style provides the edge

Business cycle funds invest in themes expected to do well over the medium to long term, such as digital businesses, prem­ium­isation of consumption, and urbanisation

Capitalise on secular spending surge with consumption-themed equity fund

Consumption themed funds invest across a diversified range of sectors: FMCG, auto, telecom, consumer durables, healthcare, power, organised retail, and realty

Savvy investors with high risk appetite likely to opt for quant funds

Quant funds use a rule-based approach for portfolio construction based on quantitative models

Special situation funds: Ideal for high-risk investors with long horizon

These funds at times invest in companies going through corporate restructuring, such as mergers, demergers, or buybacks

Retirement MFs: Equity allocation, flexible withdrawal options key benefits

Stay invested even after lock-in ends to gain from compounding

Select a smart-beta fund based on your risk tolerance; restrict exposure

Aggressive investors may choose momentum-based factor funds

Have some risk appetite? Invest in highly rated company fixed deposits

While they offer higher returns than bank FDs, they are not protected by deposit insurance

Innovation funds: High-risk bets that are apt for seasoned investors

Failure rates among innovators tend to be high; concentrated portfolios make these funds volatile

Manufacturing funds: Invest with 5 to 7-yr horizon to cope with eco cycles

Add these schemes to your portfolio only after building a core using diversified funds

Beat valuation risk in smallcap funds with limited exposure, long horizon

While past-year returns have been high, these funds are prone to significant drawdowns in tough economic environments

Investors should sync tax savings with goals and cash flow needs

Even ELSS, being an equity fund, should be purchased with minimum seven-year horizon

Enhance portfolio resilience by investing in MNC fund: What is on offer?

These funds, however, tend to underperform when domestic cyclicals do well

Manage trading capital efficiently with liquid exchange-traded fund

Switching between cash and equity and back becomes seamless

Obtain secured credit card, repay regularly to repair credit history

Use less than 30% of card limit; avoid frequent loan applications

Arbitrage funds: Returns likely to be healthy in rising or volatile markets

Excess funds chasing arbitrage opportunities may, however, reduce potential returns

Conservative investors with long-term goals may opt for ESG funds

Their recent underperformance vis-a-vis multi- and flexi-cap funds was due to predominantly large-cap exposure

Reasonable valuations, potential US rate cuts bode well for tech funds

Mitigate inherent volatility with limited exposure and a long horizon