Mutual Fund Advisory

Most MF advice begins
with a product.
Ours begins with a question.

There are over 1,500 mutual fund schemes in India. Most investors own the wrong ones, or too many of them, or both. Good mutual fund investing is not about picking the best-rated fund on a portal — it is about understanding what your money needs to do and building a portfolio that does exactly that.

Talk to Tequity
1,500+
Mutual fund schemes available in India — most investors need fewer than 7
₹68L Cr
Total mutual fund AUM in India as of 2025 — and growing every month
44%
Of large-cap active funds underperformed their benchmark over 5 years (SPIVA 2024)
0.5–1%
Typical expense ratio difference between direct and regular plans — compounds significantly over time

What Most Mutual Fund Advice Gets Wrong

The mutual fund industry in India has grown enormously. The quality of advice has not kept pace.

🏆

Past returns as the only criterion

A fund that returned 40% last year may have done so by concentrating in one sector. That fund is not necessarily right for your portfolio — but it will be on every "top funds" list.

📋

Too many funds, too much overlap

Most investors own 12–15 funds across different platforms. Many of these hold the same 30 stocks. The illusion of diversification — without the reality.

🔔

No review, no rebalancing

Funds are bought, then forgotten. Fund managers change. Mandates drift. Markets shift the allocation you started with. A portfolio with no monitoring drifts without you noticing.

💼

Products before goals

The question should be: what does this money need to do, and when? Instead, the conversation usually starts with: here is a fund we like this month. That is backwards.

Tequity's 5-Step Process

Every portfolio we build starts with the same foundation: understand before you invest.

01

Understand Your Situation

Goals, timelines, income, tax bracket, existing investments, risk tolerance — we map everything before recommending anything. No two portfolios are alike.

02

Define the Right Allocation

How much in equity vs debt? What timeline for each goal? What role does international diversification play? Asset allocation is the decision that matters most.

03

Research and Select Funds

We go beyond star ratings. Fund manager track record, portfolio construction, mandate adherence, overlap analysis, and consistency across market cycles — all evaluated before a fund enters our consideration set.

04

Construct the Portfolio

The right funds in the right proportions — with deliberate overlap management and tax-efficient structuring. A 7-fund portfolio can be more powerful than a 15-fund one if built correctly.

05

Monitor and Rebalance

We review portfolios regularly — watching for manager changes, style drift, mandate deviations, and allocation drift. When something needs to change, we act — and we tell you why.

What Goes Into Our Analysis

Most advisors select funds from rating portals. We go deeper. Here is the research infrastructure that informs our thinking.

Regulatory Filing Intelligence

Every week, hundreds of companies file disclosures to NSE — new orders, cost pressures, capacity additions, management changes. We read them so you do not have to. This gives us an early view of what is actually happening inside the companies your funds hold, before it shows up in fund NAVs.

Global Capital Flow Tracker

Where is global money moving? We track AUM and flow data across thematic ETFs from ARK, iShares, Global X, VanEck, and others. When foreign capital starts loading into a theme or pulling out of a market, it has implications for Indian equity funds — especially those with large-cap and export-linked holdings.

Fund Holdings Deep-Dive

We analyse the annual reports, concall transcripts, and disclosure history of the top holdings across major mutual funds. Understanding what is actually inside a fund — not just the top 10 names — tells you far more about its risk profile than any star rating.

Institutional Positioning Monitor

Delivery percentage, volume behaviour, and price action together tell a story about where institutional money is moving. We track accumulation and distribution patterns across equity markets — context that informs both fund selection and timing of portfolio rebalancing.

Thematic Index Tracking

We build focused indices around specific economic themes — defence supply chains, city gas distributors, API exporters, capital expenditure cycles. Each is tracked to see whether a theme is strengthening or weakening in aggregate. This is the research behind any thematic fund recommendation we make.

Macro and Geopolitical Impact Mapping

When a macro event happens — a trade policy shift, a commodity price move, a rate decision — we go through actual company disclosures to map which fund holdings are exposed and how significantly. Context-aware analysis, not generic market commentary.

Understanding the Landscape

Mutual funds in India span a wide range of categories. Here is what each one is — and what it is suited for.

Equity

Equity Funds

Invest primarily in stocks. Higher long-term growth potential, higher short-term volatility. Best suited for goals with a 5+ year horizon where you can ride out market cycles.

  • Large Cap — top 100 companies by market cap
  • Mid Cap — companies ranked 101–250
  • Small Cap — companies ranked 251 and beyond
  • Flexi Cap — manager decides the mix
  • ELSS — equity with 3-year lock-in, tax benefit under Sec 80C
  • Sectoral / Thematic — concentrated, higher risk
Hybrid

Hybrid Funds

Hold a mix of equity and debt. The proportion varies by category — from mostly debt (conservative hybrid) to mostly equity (aggressive hybrid). Good for investors who want some growth without full equity volatility.

  • Balanced Advantage — dynamic equity-debt allocation
  • Multi Asset — adds gold, REITs, or international
  • Aggressive Hybrid — ~65–80% equity
  • Conservative Hybrid — ~10–25% equity
  • Arbitrage — near-debt returns, equity taxation
Debt

Debt Funds

Invest in bonds, government securities, and money market instruments. More stable than equity, suited for capital preservation, parking surplus funds, or generating regular income.

  • Liquid — very short duration, near-savings rate returns
  • Short Duration — 1–3 year maturity profile
  • Corporate Bond — higher-rated corporate paper
  • Gilt — government securities only, no credit risk
  • Credit Risk — higher yield, lower-rated paper
  • FMP — Fixed Maturity Plans, close-ended
International

International & Thematic

Access global markets or specific economic themes. Domestic international funds have SEBI-imposed limits. Gift City outbound funds offer a cleaner, more tax-efficient route for meaningful global allocation.

  • Domestic international MFs — SEBI-restricted since 2022
  • Gift City retail funds — USD-denominated, cleaner structure
  • Gift City PMS and AIF — for larger allocations
  • Sectoral — IT, pharma, banking, infra, consumption
  • Index funds — passive, low cost, benchmark tracking

Mutual Fund Investing Across Life Stages

The right mutual fund portfolio looks very different depending on where you are in life.

🏗️ Early Accumulation

Working professional, 25–40, building wealth over 15–20 years. Heavy equity orientation makes sense. Goal: let compounding do the work. SIPs in equity and flexi-cap funds, indexed where the category warrants it.

🌍 NRI Investor

Indian markets from abroad. NRI mutual fund investing has its own rules — NRE/NRO accounts, FATCA compliance, repatriation planning. Funds must be chosen with an eye on both Indian market exposure and tax efficiency in the country of residence.

💼 HNI Portfolio

Portfolios above ₹50 lakh benefit from a more structured approach — direct plans, multi-asset construction, SIFs for strategies that go beyond long-only equity, Gift City for global allocation. The standard 5-fund SIP portfolio is not enough at this level.

🌅 Pre-Retirement

Within 5–10 years of retirement. The conversation shifts from growth to capital preservation and income generation. Gradually reducing equity concentration, building a debt ladder, and planning for systematic withdrawals without running out of corpus.

Mutual Funds — Questions We Hear Often

Should I invest in direct or regular mutual fund plans?+
Direct plans have no distributor commission and therefore a lower expense ratio — typically 0.5% to 1% lower than regular plans. Over a 10–15 year horizon this compounds to a meaningful difference. However, direct investing without ongoing advice can lead to poor fund selection, wrong timing, and no rebalancing — which costs far more than 1%. The right answer depends on whether you have the time, knowledge, and discipline to manage your portfolio without help.
How many mutual funds should I hold?+
Most investors hold too many funds, not too few. Five to seven well-chosen funds across distinct categories typically gives you adequate diversification without excessive overlap. Beyond that, you are usually just duplicating exposure — two large-cap funds holding largely the same 50 stocks does not reduce risk, it just adds paperwork. Quality and fit matter more than quantity.
How often should I review my portfolio?+
A meaningful review should happen at least once a year — looking at fund performance relative to category, changes in fund manager, style drift, and whether your original allocation still matches your goals. More frequent reviews rarely produce better outcomes and often lead to emotional decisions. That said, also review after any major life event: job change, windfall, retirement, or a significant market move.
Active funds vs index funds — which is better?+
It depends on the category. In Indian large-cap funds, most active managers struggle to beat the Nifty 50 consistently after fees — index funds make a strong case here. In mid-cap and small-cap, active management has historically added value in India because those markets are less efficiently priced. The question is not active vs passive as a philosophy — it is which approach fits which part of your portfolio.
What is portfolio overlap and why does it matter?+
Portfolio overlap is when two or more funds hold the same underlying stocks. If your large-cap fund and your flexi-cap fund both have heavy positions in HDFC Bank, Reliance, and Infosys, you are not as diversified as you think. High overlap means your returns will track together — when one falls, the other likely falls too. Checking overlap before adding a fund is a basic part of portfolio construction that most investors skip.
What is the difference between equity, hybrid, and debt funds?+
Equity funds invest primarily in stocks — higher long-term growth potential, higher short-term volatility. Debt funds invest in bonds and government securities — more stable, lower growth, suitable for capital preservation or income. Hybrid funds hold a mix of both — the allocation varies by category, from conservative hybrids (mostly debt) to aggressive hybrids (mostly equity). The right category depends on your timeline, risk tolerance, and goals.

Not Sure Where to Start?
Start Here.

Whether you're starting out or restructuring an existing portfolio, we will map your goals, review what you have, and give you an honest view of what needs to change — and what does not.

WhatsApp: +91 97642 89714 invest@tequity.co.in
💬