How to allocate funds among different sectors? Step by Step Guide

Stock Market fund allocation

Why to Read

Fund allocation is a very crucial stage in making wealth from stock market. If you lack in here, there is a very strong chance that you are not going to have what you could if allocated cautiously.

Though it’s very important at every stage and for everyone, no matter if you are a balanced investor or just debt or only Equity or Mutual funds. Not only in this Investment sector but when you start your career it gets really important for you to assign your expenses and savings some fixed percentage.

We have already written an article on how to allocate funds among different investment options like how much to Invest in Mutual funds/Equity/Debt/bonds Etc. You can check that here.

Now moving ahead If you are an Equity Investor it gets really important for you to make an cautious and intelligent fund allocations as equity is tend to be very very volatile. You miss the chance, you lose.

Must Read:- Motilal Oswal handpicks 10 ‘focus’ stocks post Q4 earnings; do you own any?

Why Equity Investor.?

Equity Investor generally tend to focus on only few sectors but thats a wrong way to deal with the stock market Investment strategy.

When you can float to the end why just restrict yourself tothe bank only. Just dive into it and focus on every rising sector.

There is a saying, “Never measure the depth by your both the feet”. It has two ways to understand this, first don’t assign your funds only on one place as if it losses you lose. Second just don’t Invest just because everyone else is, Research and then make the Investment. But MAKE IT.

Right Now both Sensex and Nifty are less than 3 percent away from their record highs and as they say if the trend continues we could touch those levels in March only. That’s why this is the best time to re-allocate your funds.

The second reason to change and modify your portfolio is Elections, these may impact the stock market if something unexpected happens that’s why experts are advising Investors to stick with the sectors which are showing strong results.

Though the past sectors also shows that Election time really brings good performance from the financial institutions, banks and autos. So, you never know from where you can have that one time moment which will push you to the list of rich people.

Read Also :- How an Investment of rs 10,000 generated a Humoungous wealth of 1.5 cr.?

Allocation process:-

We talked to some Experts and Below are theirRecommendations:-

Analyst of Avighna Trades

He Recommends to allocate at least 30 percent in banking sectors especially in PSU banks Like PNB, SBI BoB Etc. 20 per cent in Auto industries. His recommendations include M&M, Hero MotoCorp, GNA Etc.

Apart from this 20 percent into Infra and Real Estate projects Here you can research on DLF, NCC, NBCC Etc. 10 percent in Cement Stocks which are related to infra projects.

Moving ahead his Graph looks like this

How to allocate funds between different sectors

Analyst at

His graphs looks like this

How to allocate funds between different sectors

He doesn’t have a any specific company recommendations but this is how he wants allocate his funds.

Though I believe this graph is clearer than the precious one. Will be easy monitor if you don’t have a time to check and research on regular basis.

Must Read:- Top 5 Pharma stocks under Rs. 200; Best Multibagger stocks to Buy Now


I hope, now you have a slightly better idea how you can allocate your funds. I wont advise you to go strictly like these but more or less you can choose and allocate on this track.

If you knowsomething more, Please share with us.

If you liked our recommendations please comment Yes, If you don’t please comment No.

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