More Funds Does Not Mean Better Diversification
Many portfolios hold 15-20 funds but still remain concentrated in similar stocks and themes.
Healthy Portfolio Structure
- Core equity funds: 2-4
- Debt/liquid allocation: 1-3
- Satellite/thematic exposure: limited and intentional
Signs of Overlap
- Similar top holdings across funds
- Multiple funds with identical mandate
- No clear purpose for each scheme
Action
Consolidate gradually and define role-based allocation for every fund in the portfolio.