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How can I consolidate my portfolio?
Having too many funds gives a false sense of diversification, says Dhirendra Kumar
27-Apr-2020
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I've been investing in mutual funds since the inception of the MF industry. Now, I want to consolidate my portfolio into three-four schemes so that I can manage easily. How to go about it and which type of funds should I consolidate into? Further, should I wait for the markets to become normal?
- R.S. Dahiya
Having too many funds may not necessarily be adding any significant value to your portfolio. Also, it gives a false sense of diversification. Further, you can do it even now. What I keep suggesting is to continue investing regularly so as to average your investments and I believe you have already done that. Regarding the consolidation of your portfolio, if it's an all-equity portfolio, then to keep things simple, invest in a few multi-cap funds. Choose multi-cap funds of different fund companies.
You can move your money at one go. Also, given the current market situation, the incidence of capital gains will be low but do take a note of it before redeeming your funds. Also, be aware of the exit load implications. So, do your calculations. All of these details can be checked at your account statement, which you can get from CAMS and Karvy.
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