Building Mutual Funds portfolio
Before we get into the details of building mutual funds portfolio, let us take a step back and understand the parameters that are required to build one.
First step is to identify the amount that you need to save for your future. For example, if you are saving Rs 10 lakh for your children’s education 10 years down the line, start with a small amount today.
Assuming your savings grow by 12%, you need to start saving only Rs4347/- on a monthly basis. Click here to compute your monthly SIP amount.
After you have decided the SIP or lump sum amount, you should compute your risk profile.
Once you know the amount, risk profile, and time period of investment, our algorithm can suggest funds accordingly.
For example if you are a Moderately High risk investor(approx. 70% equity allocation) investing ₹10,000 for more than 5 years, our algorithm suggests you to invest ₹6,500 in Equity Funds, ₹2,500 in Debt Funds and ₹2,000 in Balanced funds.
Our top funds algorithm also suggests the best funds to invest into in each asset class category. We use last 3 year average returns to compute your overall portfolio returns.
This is Fintra recommended portfolio allocation based upon your Risk profile, Investment Amount and time period of investment. Next chapter shows how we pick the funds.
Download the app now by clicking on Google Play link below. Learn everything about mutual funds on Fintra app.
