Portfolio in red after moving from FDs? Expert shares how to handle volatility and allocate smartly

A Gujarat-based investor, new to equity mutual funds after years in fixed deposits, faces initial losses but shows courage to invest further. Experts advise focusing on asset allocation across market caps rather than changing existing sound funds. Additional investments should be channeled into current flexi-cap and multi-cap schemes, with lumpsum considered if comfortable with volatility.

Want to build Rs 1 crore corpus? Find out the mutual fund SIP amount needed with this calculator

This guide helps you calculate the monthly SIP needed to reach a Rs 1 crore goal using simple Excel functions or a DIY paper formula. Adjust assumptions, returns, and timelines to plan your investments with confidence and clarity.

Multicap funds gain traction, but risk from small-cap exposure persists

Multicap funds are gaining traction as a comprehensive investment option, offering exposure to large, mid, and small-cap stocks. However, regulatory mandates requiring significant allocation to smaller stocks make them more susceptible to market volatility and deeper drawdowns during corrections, unlike more flexible categories.