FAQs
Frequently asked.
How often should I review my mutual fund portfolio?
Many advisors suggest reviewing your portfolio at least once a year, or whenever there's a significant change in your goals, income, or risk appetite. Frequent reviews driven by short-term market noise are generally not recommended.
What is the difference between direct and regular mutual fund plans?
Both plan types invest in the same underlying portfolio. Direct plans are bought without an intermediary and have a lower expense ratio; regular plans are bought through a distributor or advisor and include advisory support within the expense ratio.
How does asset allocation help manage risk?
Asset allocation spreads your investments across asset classes such as equity, debt, and gold, which often behave differently under the same market conditions. This can reduce the overall volatility of your portfolio compared to concentrating in a single asset class.
Should I stop my SIP when markets fall?
Stopping a SIP during a market fall means missing the opportunity to buy units at a lower price, which is one of the core benefits of rupee-cost averaging. Many long-term investors choose to continue their SIPs through downturns, though the right decision depends on your individual circumstances.
What is portfolio rebalancing and how often should it be done?
Rebalancing means adjusting your portfolio back to its original target allocation after market movements have shifted it. A common approach is to rebalance annually or when an asset class drifts beyond a set threshold from its target.