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Different portfolios for different goals

Select two-three funds and start separate SIPs for separate goals, says Dhirendra Kumar

Should we have different portfolios for different goals?
- Vamsi Reddy

Yes, you should have different portfolios for different goals. But that does not mean you invest in too many funds. The key is to have three funds that can be linked to four-five goals and make separate investments in these funds. For different goals such as the education of your two kids, start separate SIPs for that in the same fund. I think just spreading the investment for the sake of diversification may not be a wise thing.

Also having about two-three funds has a few benefits. First, it provides the apt diversification required in a portfolio. Second, having a limited number of funds helps you track them better. You remain interested and keep an eye on the funds, tracking their performance and other parameters like change in fund manager, etc.

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