Should we invest in six different mutual fund schemes?

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I and my wife both are working and we are investing via SIP since last four years. However, we are investing same amount in same schemes. Do you suggest that we both should invest in 6 different funds – 3 for her and 3 for me? Note that our risk appetite and goals are same.
— Mahesh Vinchurney

Raghvendra Nath, managing director, Ladderup Wealth Management responds:

I and my wife both are working and we are investing via SIP since last four years. However, we are investing same amount in same schemes. Do you suggest that we both should invest in 6 different funds – 3 for her and 3 for me? Note that our risk appetite and goals are same.
— Mahesh Vinchurney

Raghvendra Nath, managing director, Ladderup Wealth Management responds:

While your goals and risk appetite may be same, selecting six different funds, three for your wife and three for you would surely help create a more diversified portfolio for your combined investments. You should also make sure that the funds selected are also diversified across market capitalisations. I would recommend that out of the six mutual funds you are going to select, two can be large cap funds, one large and mid-cap fund, one multi-cap fund, one mid-cap fund and one small-cap fund. Investing in six consistently well performing funds can help you to achieve decent returns in the long term and help your goals. You should keep monitoring the performance of your selected funds at regular intervals and should exit funds which have failed to deliver good returns compared to other funds in the category and reinvest in the better performing funds.

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