How Many Mutual Funds Should I have in Portfolio #mutualfunds Part 2

How Many Mutual Funds Should I have in Portfolio | Mutual Funds for Beginners Part - 2 #mutualfunds #mutualfundsinvestment #mutualfundsforbeginners

This video is part 2 of my free mutual fund series. It discusses how many mutual funds should we have in portfolio depending upon investment horizon and risk.

if my investment horizon is upto 2 yrs: then idealy i should take low risk
so i would invest in 2 debt funds only (1 liquid fund and 1 money market fund)

if my investment horizon is 2 to 5 yrs : then i may take moderate risk , so for a well diversified portfolio
i would go for
1 debt fund and 1 gold for balancing risk
1 international fund for diversification
1 elss fund only if i want tax saving investment
max 2 large cap fund for stability in portfolio ( 1 in index fund and 1 in flexi cap fund with high allocation in large cap)
and 2 midcap funds to drive the portfolio returns ( 1 based on growth investing and one value investing)

but if !! investment horizon is over 5 yrs: then i may afford moderate to high risk

so along with the same funds i would add
2 small cap funds
replace the debt fund with 1 hybrid fund
& maybe add 1 sectoral fund but only if i understand the sector really well (upto 10% allocation )

so logically 8 to 12 mutual funds in portfolio seem enough to me but at least one must try not to exceed 15 funds in portfolio because it may lead to over-diversification and may hamper overall portfolio returns.

Next is Part 3 - How much percent should we allocate in Large, Mid & Small Cap in Mutual Funds Portfolio? (Make sure to SUBSCRIBE!)

Disclaimer: Please note that I am neither a financial consultant nor a financial advisor, this video is only for entertainment purpose. This channel does not guarantee any profit or loss so invest at your own risk. Please do your own due diligence, verify data and own research before making any investment decisions.

[Tor_Mai_Ke_Bumar]

I have only three fund. Flexi, mid & small. And invest just 100/- each every fund. Because I am belong to a poor family's. And I am a student. And my age is 19😢😢😢

[asifu]

5 mutual fund scheme is enough ..- portfolio

[kaushik]

Is hybrid fund required for investment horizon of 5 years or more. Index funds of Large cap are good for 5-7 years horizon where hybrid fund need not be added. For 7 years and beyond any Equity fund - Small or Mid cap fund according to risk profile may be good enough.

[StormShock]

Will you make a review video about hybrid funds?

[sanjithn]

Keeping more than 5 funds for any horizon is waste