Widely read:
AI-generated image
I have Rs 35 lakh to invest over 8-10 years and plan to split it across seven funds. Is this a good strategy for a risk-taker? - Anonymous
For an experienced investor with Rs 35 lakh and an 8-10 year horizon, diversifying across multiple funds seems wise. However, managing seven funds might be overwhelming and less impactful. Instead, consider reducing the number of funds to five, allocating around 20 per cent to each.
Focusing on fewer funds allows for more meaningful allocations and ensures you stay engaged with your investments. When your money is concentrated around five funds, you're more likely to monitor the performance and make necessary adjustments. Conversely, spreading too thin can lead to complacency, where you might not give each fund the attention it deserves.
Also watch: How to diversify your investment portfolio effectively
This article was originally published on September 03, 2024.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
For grievances: [email protected]
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
