Mutual funds: What is a core-and-satellite portfolio and how to build one? An explainer
Mutual funds: When curating a new portfolio, investors are advised to follow the strategy of constituting two different sets of portfolios: core and satellite. This investing strategy can go a long way in long-term wealth creation and is also seen as a fulcrum of asset allocation.
Young investors are often urged to follow this strategy as a safe and secure way to build wealth over a period of time.
What is a core-and-satellite portfolio?
Core portfolio is the basis of an investor’s financial assets, offering stability, long-term growth, and lower risk. It typically comprises diversified and low-cost investments such as index funds, ETFs, or blue-chip stocks that track benchmark indices such as Nifty50.
The goal is to provide consistent…
