1. It is factually true that top midcap funds have given 18%+ CAGR trailing returns in last 15+ years, and smallcap funds have given 20%+ trailing returns over last 10 years, making them obvious investment choices for an aggressive investor.
2. However, opting for top-rated multicap funds, or even Hybrid Aggressive funds, would be better for a moderately aggressive investor as they have also given 16%+ trailing returns in last 15+ years.
3. These funds are lesser risky as they are able to cushion themselves better by realigning portfolios rapidly to benefit from changing market moods during investor's accumulation stage, or to bear any redemption pressure of investors, as they are likely to be more liquid than midcaps and smallcaps.
4. Long-term wealth creation happens when fund management process has flexibility, which these funds amply allow through in-built mandates, whereby freeing investors' time and mindspace to focus on own careers / chosen vocations for advancement, thus automatically increasing investment potential further during earning years, for a richer and comfortable retired life.
5. While retiring, one should halve his number of funds, retaining only Balanced and Multicap funds, by shifting others into them gradually, and then annually withdraw 4-5% of the accumulated corpus for meeting his retirement expenses for entire retired life.
2. However, opting for top-rated multicap funds, or even Hybrid Aggressive funds, would be better for a moderately aggressive investor as they have also given 16%+ trailing returns in last 15+ years.
3. These funds are lesser risky as they are able to cushion themselves better by realigning portfolios rapidly to benefit from changing market moods during investor's accumulation stage, or to bear any redemption pressure of investors, as they are likely to be more liquid than midcaps and smallcaps.
4. Long-term wealth creation happens when fund management process has flexibility, which these funds amply allow through in-built mandates, whereby freeing investors' time and mindspace to focus on own careers / chosen vocations for advancement, thus automatically increasing investment potential further during earning years, for a richer and comfortable retired life.
5. While retiring, one should halve his number of funds, retaining only Balanced and Multicap funds, by shifting others into them gradually, and then annually withdraw 4-5% of the accumulated corpus for meeting his retirement expenses for entire retired life.