As the new financial year has just kicked off, investors of all hues would be doing some form of ‘stock taking’ of their investments. Certain securities are perhaps worth redeeming, they would discover, while exposure to others could be raised further in order to earn higher returns. During this process of redeployment of funds, one would require more funds. Let us suppose you get access to an additional ₹5 lakh to invest in fiscal 2025, where all, do you think, this money could be invested? We spoke to a few experts to get a sense of the available investing opportunities for a lay investor early this fiscal. We condense the learnings we drew from them here: Top-up and diversify One expert suggests that one way to invest ₹5 lakh is to top up the existing portfolio, and another one is to diversify this sum into multiple assets such as equity, debt and fixed income instruments. This can be done by investing the capital into multi-asset funds. “If you are an existing investor and you have ₹5 lakh to invest at the beginning of the year, there are two things you can do: one, add to the portfolio that you already have. And two, you can invest this money into multi-asset funds, which give you an exposure to multiple assets with just one fund. They give you exposure to more than 3 to 4 assets with just one fund,” says Santosh Joseph, Founder, Refolio Investments and Germinate Investor Services. ALSO READ: Don’t sabotage your FY25 portfolio! Avoid these 5 mutual fund mistakes However, if you are building a new portfolio then you can invest about 40 percent into fixed income, another 40 percent into equities, (flexi cap or a multi cap fund) and remaining 20 percent in multi asset funds to gain exposure to equity, fixed income, global stocks and precious metals such as gold, adds Joseph. Plan I ₹2 lakh Fixed income instruments ₹2 lakh Flexi or multi cap funds ₹1 lakh Multi asset funds Basket of stocks Another financial expert Gaurav Goel, a Sebi-registered investment advisor (RIA) told Livemint that the hypothetical investor can invest this ₹5 lakh into a basket of stocks and mutual funds to hold them for a minimum of 3 to 5 years. “I would ideally split this ₹5 lakh into seven stocks and three equity mutual funds (a total of 10 financial instruments) of ₹50,000 each. The stocks would include four large cap , two mid cap and one small cap, whereas three mutual funds would entail one large & mid cap fund, one flexi cap, and one mutual fund with global exposure,” Goel says. Plan II ₹2,00,000 4 Large cap stocks of ₹50K each ₹1,00,000 2 Mid cap stocks of ₹50K each ₹50,000 Small cap stock ₹50,000 Large & mid cap mutual fund ₹50,000 Flexi cap fund ₹50,000 Mutual fund with global exposure He suggests that the investment can be made in a staggered way over the next 3-6 months to average out the cost. And as far as mutual funds are concerned, one can invest via systematic investment plans (SIPs). “Diversify your investments so that one rotten egg (investment) doesn’t spoil your portfolio returns. And invest only in quality stocks with sound management and good fundamentals,” he adds. Milestone Alert! Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now! Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. More Less Published: 07 Apr 2024, 12:29 PM IST Source link Post Views: 1 Post navigation How Much Are the Ultra Wealthy Really Investing in Gold?