Business
What Is Core-and-Satellite Strategy And How Can It Help Investors Navigate Market Volatility?
Last Updated:
The ‘core’ typically makes up around 60–70% of a portfolio and is meant to deliver stable returns while serving as its foundation.
Small and mid-cap stocks produced 14-17% returns in the last 20 years. (representative image)
Navigating financial markets often seems like an uphill task as investors need to balance the desire for growth with the fear of sudden downtrends. When markets fall, people struggle to find the right direction while chasing high returns and protecting their wealth from volatility. Too much risk can lead to panic mode, while excessive caution could leave your portfolio lagging behind inflation and long-term goals.
A practical solution here is the core-and-satellite strategy emerges as a practical solution. Under this, investors get to combine a stable “core” of diversified, low-cost investments with the dynamic “satellite” portion to target higher-growth opportunities. Not only does it allow them to achieve resilience and flexibility, but the strategy also ensures steady progress even during turbulent times. By following this dual approach, people can cushion portfolios against market downfalls.
How Does It Work?
According to Moneycontrol, the “core” usually accounts for nearly 60-70 per cent of the portfolio. It is specifically designed to provide steady returns and act as the anchor of your portfolio.
It comprises stable, low-cost funds:
1. Large-cap equity funds: Your hard-earned money gets invested in established companies having proven business models. Often, it is seen that they appear to fall less compared to mid and small-cap funds.
2. Flexi-cap funds: The fund managers keep shuffling the investment between large, mid and small caps, depending on the ongoing condition of the market. In simple terms, these add flexibility and diversification to the portfolio.
3. Hybrid funds: A combination of equity and debt, these are meant for growth and stability.
However, investors must note that even the “core” is not free from risk. Moneycontrol report highlights how markets fell nearly 14 per cent between October 2024 and February 2025.
The Role of Satellite Investments
Keeping core aside, the remaining 30-40 per cent is what makes up satellite investments.
“The satellite portfolio allows tactical exposure to high-growth sectors, themes, or strategies,” the report quoted Kirang Gandhi, a Pune-based financial mentor, as saying.
This includes mid-cap and small-cap funds that hold higher growth potential. Also, it features international equity funds.
This highlights that it is the growth engine of the portfolio, but also carries substantial risk.
A key part of the core-and-satellite approach is “balance,” where the core allows the money to grow steadily and the satellite portion adds more potential without putting the portfolio at risk.
In the last 20 years, the small and mid-cap indices have generated nearly 14-17 per cent returns on an annual basis, leaving behind large-cap indices. Investors must note that falls are more frequent in mid and small-cap stocks.
Using the core-and-satellite strategy, investors get to diversify their portfolio without making it too complicated.
Kirang Gandhi said this strategy combines safety with smart opportunity for Indian investors and avoids overexposure.
“It brings structure, discipline, and clarity to long-term wealth building without chasing trends,” Gandhi concluded.
Click here to add News18 as your preferred news source on Google.
January 10, 2026, 13:40 IST
Read More
Business
Indian electronic firms seek PLI 2.0, eye 30–35% share in global mobile production by FY31 – The Times of India
With the production-linked incentive (PLI) scheme now over, India’s electronics industry has pitched a fresh expansion plan, seeking continued government support as it eyes a strong jump in manufacturing and exports over the next five years. During discussions with the ministry of electronics and IT (MeitY), the industry said that by FY31, India could capture 30–35% of global mobile production. This would take annual output to $110–130 billion, with exports estimated at $55–70 billion. At present, according to ET, India accounts for about 15% of global mobile phone production, with manufacturing output exceeding $64 billion. Industry executives said the current production-linked incentive (PLI) scheme has played a key role in this growth. With the scheme set to end on March 31, companies are pushing for a new version to keep the momentum going. Talks are underway on a proposed PLI 2.0 scheme, which is likely to run from 2026 to 2031. Government officials said a new incentive programme is being considered, though details have not yet been finalised. The industry has also shared a roadmap with the government to meet production and export targets by FY31. “With a strong foundation, we have an opportunity to achieve 30-35% of global mobile production in the next five years,” Pankaj Mohindroo, chairman of India Cellular and Electronics Association (ICEA), told ET. “To realise this ambition, it is critical to sustain the current momentum and continue investments. We are actively engaging with the government to shape the next phase of this growth journey.” Industry players said increasing India’s global share would help strengthen the supply chain, deepen the manufacturing ecosystem and support research and development at scale. One executive said scale is more important than value addition alone for long-term sustainability. The government is also examining how much domestic value addition should be required for incentives and how exports can be increased without breaching World Trade Organization norms. Experts said the growth in production will depend largely on exports, as domestic demand is expected to weaken. India’s smartphone market could shrink by more than 13% this year due to rising memory costs, which may push device prices up by 15–40%, according to an earlier report. Data from the commerce ministry showed smartphone exports rose 47.4%, from $20.44 billion in 2024 to $30.13 billion in 2025. The United States accounted for $19.7 billion, or 65% of total exports. Meanwhile, China’s smartphone exports fell from $132.6 billion to $120.6 billion during the same period, with shipments to the US declining sharply due to fentanyl-related tariffs. India’s tariff advantage in the US market has narrowed after the US Supreme Court struck down sweeping global tariffs imposed by the Trump administration. China continues to have an advantage due to its strong supply chain and advanced manufacturing capabilities, while India is still developing these.
NEW DELHI: Govt on Saturday significantly increased export duties on diesel and aviation turbine fuel to dissuade oil refiners from exporting these fuels and to ensure adequate availability in the domestic market amid ongoing tensions in West Asia. The ministry of finance issued a series of notifications hiking the export duty on diesel by more than 150% – from Rs 21.5 per litre to Rs 55.5 per litre – with immediate effect. The levy on ATF, or jet fuel, was increased from Rs 29.5 per litre to Rs 42 per litre. The export duty on petrol continues to be nil. Under the revised structure, the special additional excise duty on high-speed diesel has been raised to Rs 24 per litre, while the road and infrastructure cess now stands at Rs 36 per litre, which means a large chunk will now flow to the Centre. Govt said these duties are not meant to boost revenue, but to stop fuel exporters from taking undue advantage of price differences. The Centre had, on March 27, imposed an export duty of Rs 21.5 per litre on diesel and Rs 29.5 per litre on ATF in a bid to check windfall gains, as fuel was in short supply in international markets due to a squeeze on energy supplies amid the military conflict and export curbs imposed by China. It had also slashed excise duty on diesel and petrol to shield consumers and oil companies from the impact of high crude prices. Retail prices of automobile fuels in India have not increased despite high volatility in the international crude market, while only a small part of the international price pressure has been passed on to domestic flights. The windfall tax on exports of diesel and ATF helps the Centre partly offset the impact of the excise duty cut. On March 27, govt had estimated revenue gains from export duties at around Rs 1,500 crore in a fortnight. The further hike in export duties is likely to lead to higher revenue gains. In a statement, the ministry of petroleum had said, “At a time when international diesel prices have surged sharply, the levy is designed to disincentivise exports and ensure that refinery output is directed first tow-ards meeting domestic demand.“
A convoy of vans, lorries, tractors, and even a limousine took part in a slow moving protest around the town centre on Saturday afternoon.
Source link
IRGC Navy warns military vessels of ‘firm response’ to attempts at crossing Strait of Hormuz
[CinePlex360] Please moderate: “Meta’s lat
Indian electronic firms seek PLI 2.0, eye 30–35% share in global mobile production by FY31 – The Times of India
-
Entertainment1 week agoJoe Jonas shares candid glimpse into parenthood with Sophie Turner
-
Tech1 week agoOur Favorite iPad Is $50 Off
-
Sports1 week agoUConn Final Four run could trigger a $50M furniture giveaway for Massachusetts-based Jordan’s Furniture
-
Fashion5 days agoIndia’s exports face reset as EU links trade to carbon metrics: EY
-
Entertainment1 week agoBlake Lively reacts to harassment claims dismissal against Justin Baldoni
-
Politics1 week agoIran can sustain Strait of Hormuz closure for years, will cut US military logistics: Official
-
Business1 week agoVideo: Why Is the Labor Market Stuck?
-
Entertainment1 week agoBarbie Ferreira reveals where she stands with ‘Euphoria’ girls after exit