Too many funds in a portfolio duplicate the holdings and adds to paperwork too
I invested Rs 5,500 per month in the following Mutual Funds: SBI Mutual Fund - Rs 1,000, L&T MF - Rs 1,500, Axis MF - Rs 1,500, Kotak Tax Saver MF - Rs 1,500. Please guide me which MF should I continue and which I should stop investing in. Also suggest any other good MFs which are paying better returns. Should I close one or two poorer ones and add my balance money in rest of MFs.
The data sent by you is incomplete as the names of the exact schemes for SBI, L&T and Axis MF have not been stated for us to evaluate. The Kotak tax saver is an ELSS fund which can be continued as it helps you in tax saving apart from creating a corpus for long term as it invests in Equity.
Apart from this, I suggest that for the amount you are investing on a monthly basis, just a couple of funds (apart from the tax saver fund) should be continued with. Too many funds in a portfolio duplicate the holdings and adds to paperwork too. If your investment horizon is more than 5 years, I suggest SBI Bluechip Fund and Birla Sunlife Equity fund for your monthly SIPs.