Portfolio Construction Guide: Core-Satellite Strategy
Step-by-step guide to building a diversified mutual fund portfolio with core-satellite approach and asset allocation strategies.
Portfolio Construction Guide: Core-Satellite Strategy
What You Can Do Next
- Read the full article for complete insights
- Save for later reference
- Share with others learning about this topic
Image not available
Building a well-diversified mutual fund portfolio is crucial for long-term wealth creation. This comprehensive guide covers the core-satellite approach, asset allocation strategies, and practical steps to construct your ideal portfolio based on your risk profile and financial goals.
Understanding Portfolio Construction
Portfolio construction involves selecting the right mix of mutual funds across different categories to achieve your financial goals while managing risk effectively.
Core-Satellite Approach
The core-satellite approach involves building a stable core portfolio (70-80%) with index funds and large-cap funds, and adding satellite funds (20-30%) for higher returns.
Conclusion
Building a successful mutual fund portfolio requires careful planning, diversification, and regular monitoring. Start with the core-satellite approach and adjust based on your risk tolerance and market conditions.
Frequently Asked Questions
How many mutual funds should I have in my portfolio?
Ideally, 4-6 funds across different categories. Too many funds can lead to over-diversification and reduced returns.
Continue Your Investment Journey
Discover more insights that match your interests
Harnessing AI for Growth: Opportunities and Risks in Financial Services 2025
Explore how AI-driven technologies are reshaping risk management, customer service, and compliance across the financial sector, highlighting both innovations and regulatory safeguards.
HDFC Bank Stock Analysis 2025: Q3 Earnings Beat & Credit Growth Momentum Amid Regulatory Clarity
HDFC Bank, India’s largest private sector lender, has once again grabbed headlines with its Q3 FY25 earnings, reporting a net profit of ₹16,736 crore—a 2.
Nifty50 Equity Research 2025: Analyzing the November Market Dip Amid Global Headwinds & India-US Trade Deal Speculation
The Indian equity market, represented by the Nifty50 index, has entered November 2025 on a cautious note.
Tokenized Assets: Democratizing Investment and Wealth Creation
Explore how asset tokenization is making fractional ownership possible for real estate, art, and private equity, transforming access for a broader range of investors.
Explore More Insights
Continue your financial education journey