If the fund is just another diversified equity fund or another short-term income plan or balanced fund, it’s unlikely that the strategy itself will be a differentiator.

Should you find the ideal hybrid fund or is it more prudent to do your own asset allocation?

A focused fund in structure is similar to a diversified multi-cap fund with one very important distinction – the portfolio is more concentrated than a regular diversified equity fund. But does this mean better performance?

It is definitely a problem if you don’t get the amount you expected when a financial security with a defined period and pay-out matures.

While fear and greed may be the overarching emotions that rule investing, what the vast majority of investors experience, especially in trying times, is anxiety.

Given that the nuances of equity investing are a lot deeper, it is wiser for you to perhaps focus more on practical aspects of risk, return, and your goals while deciding your equity allocation.

Many investors prefer to have direct ownership in stocks. Remember that this route has its risks, with companies like Jet Airways, Kingfisher, Reliance Communication, Unitech, etc being prime examples. Nearly 70% of companies ever listed have faded away. One needs to have reasonable expertise before investing directly in stocks.

Should the market approaching a peak have a bearing on your equity holding? Whether you are a regular SIP investor or using lump sums as a way to wealth creation via equity mutual funds, you are likely to be tempted to take away some of that profit in fear that the rally could end soon.