How many funds you should have in your portfolio?

Investors diversify their mutual fund portfolios because they have different life goals and objectives that need to be achieved over various time periods.

Requires investing in different asset classes such as equity, fixed income, and gold, or a combination. Portfolios need to be diversified across asset classes, different schemes.

Investors have more than one scheme in their portfolios because each scheme serves a different purpose. 

For future expenses like children's education or a planned holiday, an equity savings fund may be suitable.

Target maturity funds can be used to save money for long-term goals, while gold funds act as a hedge against inflation. 

On the equity side, small-cap funds can generate alpha and help achieve goals that are 10 years away, while ELSS funds provide tax-saving benefits.

Investors looking for specific themes or international exposure can invest in technology funds, thematic funds, or geographically diversified funds.

To reduce number of schemes in a portfolio, investors can check for overlaps with similar schemes. If there is high overlap, adding another fund may not provide additional returns.