Updated Jul 23, 2021 | 07:12 IST Wealth managers say the core part of the portfolio should have large-cap companies as in a better position to weather any downturn in the economy compared to smaller companies. Representational image Key Highlights Core-and-Satellite investing, which involves holding a low-cost passive fund as the key part of the portfolio and various actively-managed schemes that will help spread out risks. The aim of the strategy is to achieve higher returns with lower risks. The low costs of passive funds like ETFs and index funds improve portfolio performances automatically compared to active schemes with higher expenses. New Delhi: As most of the largecap mutual funds, that usually hold a concentrated portfolio, underperformed their benchmark over the last couple of years, investors are now exploring options to keep their holdings well-diversified without losing the edge. One such strategy that wealth managers are recommending mutual fund investors these days is Core-and-Satellite investing, which involves holding a low-cost passive fund as the key part of the portfolio and various actively-managed schemes that will help spread out risks, the