-Sujit Nair
Your mutual fund portfolio lacks focus. You are investing in too many schemes. Investing in nine schemes may make it difficult to monitor the performance of these investments. We believe a regular investor does not need too many schemes. Two or three schemes are enough.
When you invest in too many schemes with the idea of diversification, it often results in over-diversification. There will also be duplication. Investing across every equity mutual fund will not offer you necessary diversification. You should diversify only according to your goals and risk tolerance. For example, a long term conservative investor is typically asked to invest in large cap funds or aggressive hybrid funds. Similarly, a moderate investor can invest in flexi cap funds. She can also take a small exposure to diversify, but core portfolio should be in schemes as per goals and risk profile.
If you are not clear about the basics of mutual funds or investing, seek the help of a reliable mutual fund advisor or financial planner. Gain some experience and knowledge before investing on your own.
