1 Large Cap Fund. 1 Flexi Cap. 1 Mid Cap. 1 Small Cap. This has become the “perfect” mutual fund portfolio on social media. But there’s a problem. Four funds don’t automatically mean four different portfolios. A Flexi Cap fund can already have a large allocation to large caps. So your Large Cap + Flexi Cap combination may simply mean you own the same companies twice. SEBI gives you categories. It doesn’t give you a universal formula for how many funds you should own. Before adding another fund, ask a simpler question: What does this fund actually add to my portfolio that I don’t already have? More funds can create more statements. Not necessarily more diversification. #MutualFunds #Investing #PersonalFinance #WealthCreation
CA Nitin Kaushik (FCA) | LLBShare
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