Mutual funds, Sept. 9 -- When curating a new portfolio, investors are advised to follow the strategy of constituting two different sets of portfolios: core and satellite. This investing strategy can go a long way in long-term wealth creation and is also seen as a fulcrum of asset allocation.

Young investors are often urged to follow this strategy as a safe and secure way to build wealth over a period of time.

Core portfolio is the basis of an investor's financial assets, offering stability, long-term growth, and lower risk. It typically comprises diversified and low-cost investments such as index funds, ETFs, or blue-chip stocks that track benchmark indices such as Nifty50.

The goal is to provide consistent returns with minimal volatil...