A simple question vexes many Mutual Fund investors in India - that is, "how many funds should I own at a time?". Truth be told, most Mutual Fund investors in our country end up holding too many funds at once, and this can work to the detriment of their investment portfolios in the long run.
At the root of this problem lies the fact that Mutual Funds in India are typically not invested into as part of a holistic Financial Planning proposition. Instead, investors typically start off by "buying" one or two funds in an ad-hoc manner, and then become averse to increasing their allocations to the same funds when they have more moneys to invest. They rather prefer to deploy their next wave of liquidity into different funds, mainly because they fail to understand the real dynamics of diversification.
