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What should be the distribution between large-, mid- and small-cap funds?

Dhirendra Kumar advises how to split your portfolio between large-, mid- and small-cap funds

Dhirendra Kumar advises how to split your portfolio between large-, mid- and small-cap funds

Within equity mutual funds, what should be the distribution between large-, mid- and small-cap funds?
- Mithoon

This is a very subjective thing. But broadly, I would say that large caps should comprise about 50 to 70 per cent, mid caps 20 to 40 per cent and small caps 10 to 20 per cent of your portfolio. And this is also how the complexion of the market is. The entire idea should be to get full exposure to different segments of the market which you'll be able to derive with this kind of allocation.

This article was originally published on October 03, 2019.

Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.

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