--- title: "Portfolio construction | RupeeCase Blog" description: "Diversification, correlation, allocation, rebalancing, position sizing and the risk profile that decides how much of the same portfolio you can hold." source_url: "https://www.rupeecase.com/blog/topic/portfolio-construction/" --- RupeeCase notes . Topic # Portfolio construction Diversification, correlation, allocation, rebalancing, position sizing and the risk profile that decides how much of the same portfolio you can hold. * **33**notes in this topic * **6**to read in order * **3**questions answered 01Read in this order ## Six notes that carry the idea. 1. [06Size decides more than selection10 min . 1 Sep 2026](/blog/2026-09-01-evening-size-decides-more-than-selection/) 2. [06Size decides more than selection10 min . 1 Sep 2026](/blog/2026-09-01-evening-size-decides-more-than-selection/) 3. [06Size decides more than selection10 min . 1 Sep 2026](/blog/2026-09-01-evening-size-decides-more-than-selection/) 4. [06Size decides more than selection10 min . 1 Sep 2026](/blog/2026-09-01-evening-size-decides-more-than-selection/) 5. [06Size decides more than selection10 min . 1 Sep 2026](/blog/2026-09-01-evening-size-decides-more-than-selection/) 6. [06Size decides more than selection10 min . 1 Sep 2026](/blog/2026-09-01-evening-size-decides-more-than-selection/) 02Every note ## 33 notes, newest first. 1. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 2. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 3. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 4. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 5. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 6. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 7. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 8. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 9. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 10. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 11. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 12. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 13. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 14. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 15. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 16. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 17. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 18. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 19. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 20. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 21. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 22. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 23. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 24. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 25. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 26. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 27. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 28. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 29. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 30. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 31. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 32. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 33. [The Nifty 50 is 10 stocks plus 40 footnotesThree stocks are 30 percent of the Nifty 50 and the top ten cross 58 percent, so a cap weighted index fund is far more concentrated than the word diversified suggests.2 May 2026 . 6 min](/blog/2026-05-02-morning-equal-weight-vs-cap-weight/) 03Go deeper ## From the notes to the course, and to the cards. [Learn path 2The free Learn course on the same ground, with a certificate at the end.](/learn/path-2/) [18 index algosEvery RupeeCase strategy, model back tested, in your own demat.](/strategies/) [All eight topicsBack to the hub: reading paths, search and the latest notes.](/blog/) 04Questions, answered with figures ## Three questions readers ask about portfolio construction. How many funds do I need to be diversified?Fewer than you think. At the roughly 0.85 correlation Indian diversified equity funds show against each other, twenty funds buy 1.17 effective bets against 1.14 for five. A second sleeve with a genuinely different driver takes you to about 2. [Read the note: Twenty funds, one bet](/blog/2026-08-07-evening-twenty-funds-one-bet/) Is a 60/40 portfolio balanced?In capital, yes; in risk, no. With equity swinging about 18 percent a year and debt about 5, a 60/40 book carries about 94 percent of its risk in equity. A true risk split needs roughly 22 percent in equity. [Read the note: 60/40 is a 94/6 bet with better branding](/blog/2026-06-15-morning-6040-risk-vs-capital/) What should a risk profile measure?Two axes, not one: tolerance (what you would do when the screen is red) and capacity (horizon, emergency fund, debt). Score both out of 50 and your profile is the lower of the two. SEBI's adviser rules ask for both. [Read the note: The lower number is your profile](/blog/2026-06-04-evening-risk-capacity-vs-tolerance/) Explore next ## Where to go next. * [Free module 4.1Modern Portfolio Theory, What Actually Matters11 min read](/learn/path-4/module-4-1-modern-portfolio-theory) * [Free module 4.3Rebalancing Strategies9 min read](/learn/path-4/module-4-3-rebalancing-strategies) * [CalculatorAsset allocation by risk profileFree, with the formula and a worked example](/learn/tools/asset-allocation-calculator) * [CalculatorRebalance cost at 0.2%Free, with the formula and a worked example](/learn/tools/rebalance-cost-calculator) * [StrategyNifty 50 Equal Weight strategyNifty 50, 50 stocks, every 4 weeks](/strategies/nifty-50-equal-weight) * [LearnLearn systematic investing, free11 paths, 70 modules, certificates](/learn/)