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Don’t Over-diversify

Exposure to as many as 11 funds makes your portfolio too diversified. Reduce the number of holdings…

I am running SIPs in different funds. Kindly guide if these are the right choices or I need to make changes.
— Himanshu

Reason for our reshuffling:
s Your portfolio was way too diversified with 11 schemes. We have reduced it to seven. s There was too much exposure to one fund house. We have ensured that you are now well diversified across fund houses. s We reworked your portfolio keeping your current schemes in mind and introduced just one more scheme. s You now have an increased exposure to large-cap funds, which should form the core of your portfolio. s We have loweed the exposure to the mid-cap and gold fund.



This article was originally published on April 18, 2012.

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