Suggestion on Mutual Fund

Just need a suggestion,
how does distributing money in multiple MFs (more than 3) ,
or investing in only few (1,2 max 3 ) affects returns.

What is the impact on compound interest. ?


Do you mean income tax returns or returns on your investment?

Ideally, it is recommended to have 3 to 5 mutual funds in your portfolio to manage risks as well as improve gains. What I’ve learnt from investing is that you can have 2/3rd of your fund allocation in balanced or large-cap funds which give high returns and keep 1/3rd of it for smallcap/midcap mutual funds that are risky in terms of gains but do provide high returns at times. To save Tax, you can have an ELSS that can help you save tax.

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sorry, if i was not clear, i meant return on my investments.

thanks for your suggestion @Shimoli_Singhal

You should choose 3 to 4 mutual funds, and choose equity diversified mutual funds to balance the overall risk.
Also invest majority of capital in mutual funds investing in Nifty 50 or Nifty 100. There won’t be too much returns but is is very safe!
Apart from this, you can choose largecap and midcap funds for more returns. (Higher risk)
Such balanced investment will surely give you good returns in the long run.
Happy Investing!
If you are willing to take a little bit of risk, I would advise you to invest some 10 or 20% capital in EQUITIES directly.

Well I would take all the suggestions on this thread with a bucket of salt. Financial planning is not as easy as posting a query on a public forum. There are lot of factors to be considered before making/suggesting an investing decision. This is best left to professional financial advisors (NOT DISTRIBUTORS). At the very least sign up on some Robo investing platforms such as Scripbox etc, get the advice and invest in regular mutual funds through Coin. :slight_smile: