How Many Mutual Funds Should You Own? Expert Recommends 4-5 Equity Funds

How many mutual funds are enough for a well-diversified portfolio? Prableen Bajpai, Founder, FinFix®️ Research & Analytics, says investors with a long-term horizon can consider around four to five equity schemes. A portfolio could include a large-cap index, mid-cap index, small-cap or actively managed value/contra fund, with a flexi-cap or multi-cap fund depending on risk profile. Investors can also add gold, debt or arbitrage funds for diversification and buffer needs. Prableen also highlights the growing opportunity to invest internationally through GIFT City. The key is to diversify across categories and asset classes without holding too many overlapping funds.