I have nine funds in my equity portfolio. Am I over-diversified?
Given your long-term horizon of 15+ years, your aggressive portfolio that is all equity is understandable. However, for reducing volatility and ensuring downside protection, you can introduce a debt component to the portfolio.
I am investing ₹1.06 lakh every month in nine funds, including ₹55,000 in active funds and ₹51,000 in passive funds. The active funds are ICICI Pru Blue Chip ( ₹12,000), HDFC Top 100 ( ₹2,000), HDFC Mid Cap Opportunities ( ₹13,000), DSP Mid Cap ( ₹7,000), Kotak Small Cap ( ₹5,000), and ICICI Pru Multicap ( ₹16,000). The passive funds are ICICI Pru Nifty Index ( ₹14,000), ICICI Pru Nifty Next 50 Index ( ₹17,000), and UTI Nifty Midcap 150 Quality 50 Index ( ₹20,000). My investment horizon is 15-17 years. Am I over-diversified and do I need to make any changes??
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