It's a common phenomenon to end up with too many funds in a portfolio for someone who has been investing for a long time. While diversification is a good idea, one must not overdo it. It has its own disadvantages. It may dilute the performance and may make it difficult for you to keep a track of your investments. Hence, we do not suggest investing in more than four to five funds because they are easier to manage. To understand more, you can check out our story on diversification.
This article was originally published on June 02, 2022.