Small and mid-cap stocks produced 14-17% returns in the last 20 years.  (representative image)
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News1810-01-2026, 13:40

Core-and-Satellite Strategy: Navigate Market Volatility, Boost Returns

  • The core-and-satellite strategy combines stable, low-cost core investments with dynamic satellite investments for higher growth.
  • The 'core' typically accounts for 60-70% of the portfolio, focusing on steady returns through large-cap, flexi-cap, and hybrid funds.
  • Satellite investments, making up 30-40%, target high-growth opportunities like mid-cap, small-cap, and international equity funds.
  • This dual approach helps investors balance growth desires with wealth protection, cushioning portfolios against market downturns.
  • The strategy offers diversification, structure, and discipline for long-term wealth building, avoiding overexposure and trend chasing.

Why It Matters: The core-and-satellite strategy balances stability and growth, helping investors manage risk and achieve long-term financial goals.

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