Diversify Your Portfolio with Angel One Nifty Total Market Index Fund
Understanding Market Volatility and Diversification
Market volatility refers to the rapid fluctuations in asset prices, influenced by economic uncertainty, political instability, and investor sentiment. These price swings increase investment risk but also create opportunities for those who adopt strategic approaches. One such approach is diversification, a method used to spread investments across multiple asset classes, sectors, and regions to minimise risks.
The Role of Diversification in Risk Management
Diversification reduces the impact of a single asset’s poor performance on your portfolio. By maintaining a mix of investments, you can mitigate losses caused by market volatility, ensuring a more stable investment journey. This strategy is particularly useful during uncertain market conditions, offering a buffer against extreme price fluctuations.
Angel One Nifty Total Market Index Fund: A Diversified Investment Option
The Angel One Nifty Total Market Index Fund provides broad market exposure by tracking the Nifty Total Market Index, which includes 750 stocks across large-cap, mid-cap, small-cap, and micro-cap segments. This fund ensures diversification within a single investment.
As per its Scheme Information Document, the fund also allocates 5% of its assets to cash equivalents, money market instruments, and government securities, enhancing liquidity and stability.
Disclaimer: This blog is for educational purposes only. Mutual fund investments are subject to market risks; read all scheme-related documents carefully.