Updated Jul 23, 2021 | 07:12 IST
Wealth managers say the core part of the portfolio should have large-cap companies as in a better position to weather any downturn in the economy compared to smaller companies. Representational image 
Key Highlights
Core-and-Satellite investing, which involves holding a low-cost passive fund as the key part of the portfolio and various actively-managed schemes that will help spread out risks.
The aim of the strategy is to achieve higher returns with lower risks.
The low costs of passive funds like ETFs and index funds improve portfolio performances automatically compared to active schemes with higher expenses.
New Delhi: As most of the largecap mutual funds, that usually hold a concentrated portfolio, underperformed their benchmark over the last couple of years, investors are now exploring options to keep their holdings well-diversified without losing the edge. One such strategy that wealth managers are recommending
Retail investors make a beeline for international fund of funds thehindubusinessline.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thehindubusinessline.com Daily Mail and Mail on Sunday newspapers.
Inflows in sustainable funds surge 76% to Rs 3,686 crore in FY21
Inflows in sustainable funds surge 76% to Rs 3,686 crore in FY21
Driven by increased investor interest in environmental, social and governance issues, sustainable funds in India attracted Rs 3,686 crore in the 2020-21, a jump of 76 per cent from the preceding fiscal.
Moreover, the COVID-19-led crisis has only accelerated the demand for sustainable investing.
Sustainable or ESG (environmental, social, and governance) funds in India witnessed an inflow of Rs 3,686 crore in just-concluded fiscal as compared with Rs 2,094 crore in 2019-20, according to Morningstar data.
Such funds offer exposure to themes such as renewable energy, low carbon, green transport and environmental protection.