Investors should have a well-crafted allocation in equity funds spread across categories, investment style and fund houses. Once a portfolio of schemes is constructed, investors should hold the same for the long term for power of compounding to work. While selecting a fund house, investors should look at a minimum track record of three years of consistent performance. Risk adjusted, consistent performance across market cycles is very important, rather than looking at only point-to-point returns.

olmdesk@outlookindia.com