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Are you investing in too many funds?

Investors are better off investing in manageable number of funds which can be easily tracked...

I have invested in Birla Sun Life Frontline Equity, Birla Sun Life Tax Relief, HDFC Tax Saver, DSP BlackRock Top 100, ICICI Prudential Dynamic, ICICI Prudential Infrastructure, IDFC Money Manager and IDFC Premier Equity. I have been investing in these funds at different times since 2007. I want to trim my holdings. Currently I have SIPs only in Birla Sun Life Frontline Equity, DSP BlackRock Top 100 and IDFC Premier Equity. I intend to invest for 15 years. Please advice.
- Varun Sharma

We strongly believe that investors are better off when they keep things simple. So, for that reason alone, we feel you should reduce your mutual fund holdings to a manageable level which can be easily tracked.

Although you've invested in good funds, they are a bit too many to have in one single portfolio. The funds in which you are currently investing have been doing well, you should continue with that. If you're willing to take a little more risk to earn higher returns in the long run, you can consider replacing DSP BlackRock Top 100 with either DSP BlackRock Equity or HDFC Equity. The former is a good large-cap fund, but the latter are more diversified and better suited as long-term investments.

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