If you are not fond of actively managed funds, an investment in a Nifty 50 index fund provides you exposure to a diversified equity portfolio. However, Nifty 50 consists of stocks from different sectors (banking, pharma, energy, commodities, IT, consumer goods, automobiles etc). Here is the sectoral breakup of Nifty 50 (as on December 31,2020). Can we better the … [Read more...] about Nifty 50 vs. Portfolio of Banking + Pharma + IT stocks: Which is better?
What is the best asset allocation for your long-term portfolio? 40:60 equity:debt or 50:50 or 60:40 or 70:30 or any other allocation? You will get the answer to this question only in hindsight. The best allocation for the next 20 years (2020-2040) will be known only after 2040 ends. You can run backtests and see what has worked the best in the past. While this gives you … [Read more...] about What is the Best Asset Allocation for your portfolio? 50:50 or 60:40 or 70:30?
Do you believe in working with an asset allocation approach in your portfolio? Do you rebalance your portfolio at regular intervals? Is there a merit in dividing our portfolio in assets with low correlation? In this post, let us construct a multi-asset portfolio combining domestic equity, international equity, and gold and see if delivers superior performance compared … [Read more...] about Adding Gold and International Equity to the Portfolio: Does it enhance Portfolio Performance?