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How a Mutual Fund Consultant in Kolkata Can Help You Simplify Your Portfolio

When it comes to mutual funds, simplicity always wins. The idea is not to collect funds but to achieve financial goals. By reducing unnecessary schemes, you create a portfolio that works harder for you with less effort. If you feel overwhelmed, itu2019s worth partnering with an expert. Whether through a structured investment plan, you can have a clean portfolio, efficient, and aligned with your goals.

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How a Mutual Fund Consultant in Kolkata Can Help You Simplify Your Portfolio

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  1. How a Mutual Fund Consultant in Kolkata Can Help You Simplify Your Portfolio? At first glance, owning 20–30 funds may feel like “more is better.” After all, more funds should mean more diversification, right? But the truth is, spreading yourself too thin can actually harm your returns. For beginner and experienced investors alike, seeking help from a mutual fund consultant in Kolkata can make this process much smoother. They help you declutter your portfolio.

  2. Why Do Investors End Up With Too Many Funds? It happens more often than you think. Some investors keep chasing high past returns. Others buy a new ELSS every year for tax-saving, not realizing that in a few years, they are buried under 10 different ELSS funds. And then some get carried away by New Fund Offers (NFOs) and “thematic stories” like pharma or technology. The result? A portfolio with 20, 30, sometimes even 50 funds. At that point, the portfolio looks less like a financial strategy and more like a shopping cart filled with random items. If you are planning to build a structured strategy, exploring a reliable mutual fund investment plan in Kolkata can help you stay focused. The right plan will help your portfolio have only the funds you need. The Hidden Problems of Over-Diversification At first, owning many funds may seem safe. But in reality, it comes with several problems: 1.Dilution of Returns.Let’s say you invest ₹10 lakh. In one case, you split it across 5 funds. In another, across 20 funds. Even if one fund performs brilliantly, the impact is stronger in the first case, because the allocation is meaningful. In the second case, the outperformance gets diluted. 2.Becoming “Index-Like” Without Intending To. The whole point of active funds is to beat the benchmark. But if you hold too many, your portfolio starts resembling an index. Lots of stocks, average returns, but with higher expenses. 3.Tracking Becomes a Nightmare. Imagine monitoring 30 schemes regularly, checking performance, exits, taxation, and overlaps. Most investors simply cannot keep up and end up holding funds blindly.

  3. The Ideal Number of Funds How many funds should one hold? The answer usually lies between 4 to 6 funds. Each mutual fund already holds 40–80 securities, giving enough diversification. Adding a handful more across categories (equity, debt, hybrid) provides enough balance. Think of it like a cricket team. You don’t need 30 batsmen and 20 bowlers, you need the right 11 players who can win the match together. How to Cut Down the Clutter If your portfolio is overflowing with funds, here’s a step-by-step approach to simplify: 1. Exit the Underperformers Check if any fund has underperformed its benchmark for 2 years or more. If yes, it doesn’t deserve your money. The opportunity loss of staying invested is far greater than paying some capital gains tax. 2. Avoid Too Many Sectoral/Thematic Funds A single sector may shine for a few years but fade later. Unless you are confident about timing the cycle, it’s best to stick with diversified funds. 3. Reassess Mid- and Small-Cap Exposure These funds are riskier and volatile. Limit exposure to 20–30% of your equity portfolio. Anything beyond that is excessive risk. 4. Check Portfolio Overlap Sometimes you may think you own 10 different funds, but 7 of them hold the same top stocks. This overlap kills diversification. Tools and advisors can help you check this. 5. Align With Your Goals Ask yourself: Does this fund help me achieve a financial goal - child’s education, retirement, house purchase? If not, it may not belong in your portfolio. Conclusion: When it comes to mutual funds, simplicity always wins. The idea is not to collect funds but to achieve financial goals. By reducing unnecessary schemes, you create a portfolio that works harder for you with less effort. If you feel overwhelmed, it’s worth partnering with an expert.

  4. Whether through a structured investment plan, you can have a clean portfolio, efficient, and aligned with your goals. Address: Block-Ed, Plot 52, Rajdanga Main Rd. Near Siemens Opp. R N Singh School, Kolkata- 700107

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