I am investing Rs 60,000 a month through SIP of Rs 5,000 each in 12 funds. Should I continue investing?
You need a good mix of funds that help you create a well diversified portfolio based on your investment time frame
I am investing Rs 60,000 a month through SIP of Rs 5,000 each in 12 funds. Should I continue investing?
Jasmeet Sahi, Jaipur
You are taking the concept of diversification to bizarre levels. Having so many funds in your portfolio will not only be difficult to manage and keep track of, you may also be duplicating the investment theme by holding several funds from the same fund category or those that have similar investment mandates and investment universe.
What you need is a good mix of funds that help you create a well diversified portfolio based on your investment time frame, risk tolerance and goal. Having so many funds will only mean diversification in number and not in investing style. You should try to maintain a portfolio of about 2-4 funds to derive the maximum benefits of diversification and allocate more money in each fund than adding several funds.