DizzyJellybean
DizzyJellybean

How many mutual funds should I keep?

How many mutual funds should I keep and what are these categories(like large cap, small cap, sector wise, us stocks, etc)?

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SparklyHamster
SparklyHamster

I feel it comes down to diversification in the funds, you can go for a small cap, a mid cap and a large cap fund to spread it out. There are flexi cap offerings too.
I personally have 5 active Mutual Funds.

CosmicLlama
CosmicLlama

A lot of people do it. But never understood this sort of diversification in mutual funds.
Diversification works best when dealing with individual stocks. I find, Mutual funds usually move in tandem. The % of movement varies but the direction remains the same.
Diversification between debt fund, hybrid and full equity works little better.

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