The fund invests where it claims to
Suresh is a 30-year old investor with a high income and relatively few short-term liabilities. He has a family and would like to structure a portfolio that is capable of meeting his short-term as well as long-term needs. He has a high ability and willingness to absorb risk and would like his portfolio to generate above average returns. Accordingly, he invests in an equity scheme which seeks to invest a majority of its assets in small and mid-cap stocks. Immediately after making his investment, Suresh noticed that the equity markets were witnessing enhanced volatility with small and mid-cap stocks experiencing price correction. So he decided to have a look at the asset allocation of the scheme that he had invested in and was happy to see that the scheme had continued to stay invested in as per the investment mandate. despite intermittent volatility. This way he was able to maintain his desired exposure to risk. A true to label fund will always invest in the assets and categories that it claims to and not alter its asset allocation due to short-term or intermittent changes in the investment environment.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY.