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Asset allocation to funds: Factors that shape portfolio performance

A rule-based approach in mutual fund investments will protect you from disappointment

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Investment discipline matters. (File photo)

6 min read Last Updated : Aug 31 2023 | 6:33 PM IST

In the quest for high returns, investors focus on picking the winning mutual funds and may overlook other pivotal elements that determine performance. Whether you are just starting out as an investor or looking to refine your strategy, understanding these variables is important.

Portfolio performance (good or bad) is a function of the following aspects: Asset allocation, market trajectory, investment trajectory, market timing, and choice of funds.

Asset allocation

What percentage of your portfolio was in stocks when the markets did well or badly? In my opinion, this is the biggest contributor to returns. Yet, it does not get enough

Topics : Mutual Funds Equity Mutual Funds Portfolio investments

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