What should be the proportion of large, mid and small cap funds in the portfolio?

Transcript: Ideally, entrust your money to someone who is allocating it properly. But generally speaking, 65-70% should be in large-caps, 20% in mid-caps and 10-15% in small caps. If you analyse the equity universe in India this is the break-up you get. Large caps, for instance, account for 65-70% of the Indian market's capitalization. Your portfolio will be reasonably representative of the Indian market but at the same time, there will be great selectivity. There are more than 3000 listed stocks but your portfolio will not typically contain more than 100 stocks. So, hopefully, it will perform better.

This article was originally published on July 06, 2017.