It is a good thing that you are starting your journey early
Congratulations!! 🥳 🥳🥳
Now, coming to the second part
Investing is meant to done by managing risk.
Smallcaps tend to be illiquid and volatile.
If you look into 2014–2019 window, smallcaps have not performed at all. This story may seem far fetched considering the 2020–2024 window.
To avoid such situations, it is better to diversify your investment into baskets that will aid
- Growth
- Capital preservation
- Power of Compounding
Taking this into account, it is better to invest into a 3–4 Mutual Funds that cover all aspects of the market so that you get balanced growth with loosing out on generating returns.
The remaining funds can include – Large Cap Midcap, Flexicap and Index Fund
Hope this helps
You can also read earlier posts:
I am 46 years old. I want to invest 25 lakhs for my retirement. What should I do?
Is Investing through Registered Investment Advisor or Mutual Fund Distributor a good idea?
All the best
Happy Investing and God Bless!
About the Post Author:
The Author is an AMFI registered Mutual Fund Distributor (ARN-262589). Reach out to him via email: edteficonsult@gmail.com

Leave a comment