A well-diversified mutual fund portfolio is a key strategy for investment. For diversification, you should keep investing in different types of schemes. While investing one should also steer away from over-diversification can also happen. Money9 Helpline hosted Mohit Gang, CEO and Co-Founder, Moneyfront to help you understand why over-diversification of MF schemes should be avoided in an investment portfolio.
Gang: I think this is within the range and a very well-diversified portfolio. Some schemes might be repetitive. Repetitive in the sense that you have allocated in the pharma sector you need to first check that your overall portfolio doesn’t have that particular sector. If the overall portfolio lacks in a sector, then your fund manager can allocate accordingly. You can consider a step up in large and mid-cap funds.
Watch the full video to know more…
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