I am 37 years old and I am investing 5,000 each in L&T India Value, ICICI Prudential Value Discovery, HDFC Index Nifty 100, HDFC Index Nifty Next 50, Parag Parikh Tax Saver, Canara Robeco Emerging Equities, Edelweiss Balanced Advantage, Mirae Asset NYSE Fang+ ETF FOF (Fund of Funds), S&P 500 Top 50 ETF FOF and Kotak Nasdaq 100 FOF, in addition 3,500 per month each in Mirae Asset Tax Saver, Mirae Asset Emerging Bluechip, Mirae Asset LargeCap and ICICI Prudential Regular Savings, 2,500 more in Axis Smallcap 1,500 in Edelweiss Midcap.
I have also invested 10,000 each in one of the recent NFOs (New Fund Offer) like Mirae Asset Nifty AAA PSU Bond Plus SDL April 2026 50:50 Index Fund and Edelweiss Crisil IBX 50:50 Gilt Plus SDL June 2027 Index Fund, towards my retirement expenses and my sons Education goals in 15 years for. How much more should I invest in NFO?
Name withheld on request
Your investment has the potential to give good returns in the long run. However, having an SIP in 16 equity funds is over-diversified and can be counterproductive at times. Ideally, 6 to 10 funds are sufficient in a long-term portfolio. Within these funds, you can create a mix of equity funds from different categories with some allocation to small cap and international funds depending on your risk appetite. Most of the funds you are investing in have a good track record. But when we look at the overall portfolio level there can be a fair amount of overlap. You might consider reducing the number of funds, for example, investing in one international index fund instead of three.
Looking at your long term goals, you can invest in equity funds and may not necessarily need debt funds. If you are salaried and have a reasonable EPF contribution, this will serve as a loan diversification. Investing the same amount in equity will help you build more corpus. Avoid investing in NFO as you already have 18 funds.
Harshad Chetanwala is the co-founder at MyWealthGrowth
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