Reduce risk on client's portfolio

16 Sep 2016

Reduce the overall risk on the client's portfolio. They talk returns but they want safety first. Rather than equity heavy portfolio, consider a lot of balanced funds and asset allocation funds. These funds may give a bit lower returns during a market rally but clients won't panic as much during market crashes. Avoid sector funds and reduce small caps. Use mostly large-cap and multi-cap funds for pure equity exposure. Have limited exposure to midcap funds and small-cap funds.

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