Radhika Gupta Calls 'Dal-Chawal Funds' A Staple For Balanced Portfolio
Who knew one could cross-link food staples and fund staples to illustrate the need for broad-based funds in one's portfolio? Radhika Gupta, managing director and chief executive officer of Edelweiss Asset Management Co., recommends that such 'dal-chawal' funds need to make up 80% of one's portfolio.
These are "all-weather" funds that can be hybrid, diversified equity funds that may be actively or passively managed, she explained in a post on X, formerly Twitter.
Gupta mentioned a portfolio she came across, that had more than 50% of stocks in narrow sectoral schemes.
Calling this break up "a danger in these times", she highlighted the need to allocate the majority of assets into 'dal-chawal' funds.
What's a dal chawal fund?
July 4, 2024
Broad based funds that are all weather and span a range of sectors.
Balanced advantage and aggressive hybrid types. Flexi, multi, large and mid, broad based 250-500 index types. Forever funds.
Active or passive doesn't matter - the point is not a… https://t.co/CcwkVJpflxThese can be categories like flexi, multi, large, mid and broad based 250-500 index schemes, she said, calling them "forever funds".
Narrow sectoral funds may perform well during certain cycles, but they have more uncertainty attached when it comes to future growth and returns. "...the point is not a narrow theme based fund that works in one cycle and not in the next," Gupta said.
Gupta went on to call sectoral funds the "flavour of the season". In the long term, a buy and hold approach to sectoral funds will not beat the market, according to her.
Top performers in sectors change during market cycles. Investors need to time their entrance and exit into these narrow funds, Gupta said.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
