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| Name | How to reduce the number of funds in your portfolio | Earn more by having the right no. of funds |
| Video Uploader | Video From ET Money |
| Upload Date | This Video Uploaded At 05-07-2023 09:02:05 |
| Video Discription | It’s common for investors to have more schemes in their mutual fund portfolios than required. Some investors may have even 20-30 funds. The problem with too many funds is that they are difficult to manage, they pull down your portfolio returns and your portfolio becomes index-like. There are several reasons why investors end up with more funds than needed. The most prominent ones are chasing performance, being mis-sold funds, overexcitement, lock-in period in some funds, among others. How many funds should you have? Six-seven funds are more than enough for adequate diversification. To reduce the number of funds in an investment portfolio, you can apply the following strategies: 1. Assign weights to your funds: Consider exiting funds that have less than 5% weight in your portfolio and in which you have stopped investing. 2. Exit the underperformers: Use Fund Report Card on the ET Money app for that. 3. Exit duplicate funds: If you have multiple funds of the same type, you can exit the less desirable ones based on performance, volatility, etc. 4. Review funds from the same fund house: Such funds can have portfolio overlap. Assess if they do. If yes, consider exiting some of them. 5. Exit sectoral and thematic funds: Such funds can be riskier as they focus on a particular theme or sector. Go for diversified funds. You can watch a detailed analysis of these at https://www.youtube.com/watch?v=4IuT2GOFiCI 6. Check the number of debt funds: Debt funds are needed for parking your emergency corpus or as the debt component to rebalance your portfolio. Just liquid (or arbitrage funds) and short-duration funds can do the job. 7. Prepare a model portfolio: How would you prepare a portfolio if you were starting now? Use this model portfolio to analyse your existing portfolio. 8. ET Money Portfolio Health Check: This tool on the ET Money app can highlight what’s wrong with your portfolio. Chapters 00:00 Introduction 01:31 Why Do Investors Have Too Many Funds? 02:32 The Problem Of Plenty 05:20 How Many Funds Should You Have? 06:43 Strategies To Reduce Number Of Funds 17:21 Conclusion |
| Category | Education |
| Tags | Mutual fund portfolio | Investment portfolio | Number of funds in Portfolio | Portfolio Returns | reduce funds in portfolio balanced portfolio | Re balance portfolio | How many should I have in my portfolio | how many funds in a portfolio | investing in mutual funds | Portfolio Allocation | Best mutual funds for portfolio 2023 | how to choose funds for portfolio | how many mutual funds should you have | mutual fund diversification | building a good mutual funds portfolio |
