I am mostly investing in equity mutual funds. I have been told to include debt funds in my portfolio. What is your advice?
Shankar Raju, Hyderabad
All equity diversified funds are not 100 per cent invested in equities; they do have little exposure to debt. Moreover, you should not blindly add debt funds to your investments because you have not invested explicitly in debt funds. When you analyse your investments in totality which includes money in the bank, provident fund and other such debt options, you will realise that you do have allocation to debt. Do consider putting your money in debt based on a complete analysis and not a one-off evaluation.