Portfolio Allocation
Discover the perfect mutual fund categories tailored to your investment timeline and risk tolerance. Make informed decisions based on historical performance data and expert recommendations.
Find Your Investment Profile
Investment Horizon
How long can you stay invested?
Risk Appetite
How much risk can you handle?
Complete Investment Matrix Guide
| Fund Category | Risk Level | < 3 Years | 3-5 Years | > 5 Years | > 10 Years | Historical Returns* |
|---|---|---|---|---|---|---|
| Liquid Funds | Very Low | ✅ Excellent | ⚠️ Consider | ❌ Avoid | ❌ Avoid | 4-6% (1Y) |
| Ultra Short Duration | Low | ✅ Excellent | ⚠️ Consider | ❌ Avoid | ❌ Avoid | 5-7% (1Y) |
| Short Duration Debt | Low | ✅ Good | ✅ Good | ⚠️ Consider | ❌ Avoid | 6-8% (3Y) |
| Corporate Bond Funds | Low-Medium | ⚠️ Consider | ✅ Good | ✅ Good | ⚠️ Consider | 7-9% (5Y)[6] |
| Conservative Hybrid | Medium | ⚠️ Consider | ✅ Good | ✅ Very Good | ✅ Good | 8-10% (5Y)[6] |
| Balanced Hybrid | Medium-High | ❌ Risky | ⚠️ Consider | ✅ Very Good | ✅ Excellent | 10-12% (5Y)[6] |
| Large Cap Equity | High | ❌ Risky | ⚠️ Consider | ✅ Very Good | ✅ Excellent | 11-14% (10Y)[7] |
| Mid Cap Equity | Very High | ❌ Avoid | ❌ Risky | ✅ Good | ✅ Excellent | 13-16% (10Y)[7] |
| Small Cap Equity | Very High | ❌ Avoid | ❌ Avoid | ⚠️ Consider | ✅ Excellent | 15-18% (10Y+)[7] |
| ELSS Tax Saver | High | ❌ Lock-in | ✅ Good | ✅ Very Good | ✅ Excellent | 12-15% (5Y+)[7] |
| Sectoral/Thematic | Very High | ❌ Avoid | ❌ Avoid | ⚠️ Expert Only | ⚠️ Expert Only | Highly Variable[8] |
* Historical returns are indicative and based on category averages[7][10]. Past performance does not guarantee future results.
** Tax implications and exit loads should be considered before investing.
*** Always consult with a financial advisor before making investment decisions.
Key Investment Principles
Time Horizon Matters
Longer investment horizons allow you to ride out market volatility and benefit from compound growth[1][5]. Equity investments need at least 5+ years to demonstrate their potential.
Risk vs Returns
Higher potential returns come with higher risk[6][9]. Conservative investors should prioritize capital preservation, while aggressive investors can pursue growth opportunities.
Diversification
Spread investments across different fund categories based on your risk profile[2][8]. Don’t put all money in a single asset class or fund category.
• Start with SIP investments to benefit from rupee cost averaging
• Review and rebalance your portfolio annually
• Consider tax-saving ELSS funds for Section 80C benefits
• Emergency fund should be in liquid funds before starting equity investments