Look at any decade of market history and you will see the same pattern: leadership rotates. Some years quality stocks lead, other years value or small caps take over. Predicting which style will win next is extremely hard.
The problem with chasing last year's winner
Investors often move money into whatever category topped the charts recently. By the time they do, that style has frequently already had its run. The result is buying high and selling low — the opposite of what we want.
Five complementary styles
- Quality large caps — stable compounders that anchor the portfolio.
- Value — businesses bought at a discount to their worth.
- Growth at a reasonable price — faster growers without extreme valuations.
- Mid and small caps — higher growth potential, sized to your risk appetite.
- Global equity — diversification beyond India and the rupee.
How it helps
Because the styles behave differently, the portfolio is less dependent on any one of them working. Rebalancing between them periodically also enforces a quiet "buy low, sell high" discipline.
Core-5 is a model framework; actual allocations are personalised and returns are not guaranteed.
This article is for educational purposes only and is not investment advice. Mutual fund investments are subject to market risks; read all scheme-related documents carefully.
