Stay away from pickle and chutney stocks, SME IPOs, microcaps, and Futures & Options

Edelweiss Mutual Fund MD and CEO Radhika Gupta said investors must stick to Daal Chawal investing, essentially referring to instruments that give broad based exposure to Indian equities. “Daal Chawal is all weather simple products that give you broad based exposure to equity markets. For example, a simple fund that holds the top two hundred fifty companies in India is a simple daal chawal fund. A multi cap fund or a flexi cap fund, are all very basic things. Over ten years, if corporate profits grow at 15% -18%, these funds will also grow by 15%-18%,” She said during an interaction with Fortune India.

“Now what’s pickle and chutney? It is investing in microcap funds when the market has run up this much. It is buying funds where the multiples are 100 times. Then there are super pickles like SME IPO, and F&O. Should stay away from them,” she added.