What is the ideal number of equity mutual funds that I should invest in? - Raghu Kini, Bengaluru
The reason one invests in different equity funds is to achieve diversification. Most equity schemes are well diversified, barring sector and thematic funds. So, one may get adequate diversification just by investing in a few funds. Having more fund schemes will only give you diversification in numbers. Check the OLM Elite list and, depending on your investor type, pick any two schemes. Remember, having too many funds also makes it difficult to track the performance of your investments, which is why look for a few funds to invest in as long as they provide you with the right amount of diversification along with a performance track record and history.
