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A Business Today video summary dated October 6, 2026, attributes a broad allocation idea to Shweta Rajani, Mutual Fund Head at Anand Rathi Wealth: roughly half in large-cap funds, with the rest spread across mid- and small-cap exposure. But the summary names five schemes while describing a four-fund approach, and it does not specify exact fund weights or which four to choose. Treat it as a category-level suggestion—not a ready-made portfolio or a recommendation that suits every 25-year-old.
What allocation does the suggestion describe?
The summary points to about 50% in large caps and the remaining 50% across mid- and small-cap funds. It also refers to large-cap, large-and-mid-cap, multi-cap and small-cap categories. Those labels describe different scheme categories, but the summary does not provide a precise allocation among them or explain how to reconcile them with the roughly half-large-cap framing. Business Today’s October 6, 2026 summary does not give weights for individual schemes.
It names Kotak Large Cap Fund, Bandhan Large & Mid Cap, Kotak Mid Cap, Canara Multi Cap and Invesco Small Cap. That is five examples, not an identified four-scheme lineup. The source does not say which one to leave out, so selecting any four and assigning weights would go beyond what it establishes.
Why the number of funds is not the main decision
Being 25 does not, by itself, determine a suitable equity allocation. The right mix depends on what the money is for, when it will be needed, and how much volatility the investor can tolerate without abandoning the plan. A long horizon may make short-term market declines more bearable, but it does not remove the risk of loss or make a small-cap-heavy portfolio suitable for everyone.
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Four funds are not a universal rule. More schemes can add complexity without adding meaningful diversification if they hold many of the same securities. Before adding a fund, identify the job it is meant to do and check whether its holdings materially differ from those already owned. Financial Express notes that goals, risk appetite, time horizon and overlap matter when assessing a portfolio. Its discussion of fund count and diversification also points out that distinct goals or changing circumstances can call for different arrangements.
How to assess the categories and named examples
The market-cap emphasis affects both volatility and concentration. Large-cap exposure centers on bigger companies; mid- and small-cap exposure can introduce greater sensitivity to market swings. A scheme’s category name is not a complete risk assessment, and a multi-cap or large-and-mid-cap label does not reveal how it overlaps with another fund in a particular portfolio.
- Clarify each fund’s role: Decide what exposure or function it adds rather than choosing schemes simply to reach a count of four.
- Check overlap: Compare holdings across schemes using their current portfolio disclosures. Several funds can own many of the same companies.
- Review scheme risk: Read the scheme’s current documents and risk disclosures, not just its category label or past performance.
SEBI describes the Riskometer as a way to depict the risk of mutual fund schemes across equity, debt and hybrid categories. Its February 26, 2026 circular on scheme categorization groups schemes broadly as equity, debt, hybrid, life-cycle and other schemes and sets uniform descriptions and characteristics. Use those disclosures to understand a scheme; neither a category nor a Riskometer rating alone establishes that it is appropriate for you.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.A separate four-fund illustration is not the same portfolio
In a May 29, 2026 Financial Express article, Navi AMC CEO Aditya Mulki offered a different illustrative mix: “For a 22 to 30 year old investor, simplicity is a feature instead of a limitation. A well-chosen 4-fund mix — say, a large cap index fund, a flexicap, an aggressive hybrid, and a short-duration debt fund — can genuinely get you 90% of the diversification benefit with none of the complexity of managing 10 funds.” This is Mulki’s opinion, reported by Financial Express; the “90%” is not an independently verified statistic or a guaranteed outcome. The mix also differs from the market-cap approach attributed to Rajani, so it should not be combined with her named examples as though both sources describe one portfolio.
Quick Recap
What to do before investing
- Write down the goal and date. A fund for a distant goal may be treated differently from money needed in the near term.
- Set a risk level you can sustain. Consider how you would respond to a substantial fall in equity value, not just how much risk sounds acceptable in a rising market.
- Choose an allocation before choosing scheme names. Decide how much exposure belongs in each role and whether the overall mix matches the goal and horizon.
- Read current scheme documents. Check each fund’s stated category, portfolio, Riskometer and other disclosures, then assess overlap across the full set.
- Get personal guidance if the choices are unclear. A qualified financial planner or investment adviser in India can help relate the allocation to your circumstances; the examples in the news coverage are not individualized advice.
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