Stick to the Basics

Given a choice, would you like to limit your investment horizon knowing fully well that it is no guarantee for better returns? For some strange reason, fund houses keep coming up with concentrated equity funds that seek to invest in just 20-25 stocks, thereby doing away with the need of diversification in a portfolio. Overall, we have eight such concentrated funds in the country (see graphic) which remain invested in only 10-25 stocks all the time. The other equity diversified funds invest in the universe of 40-45