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A mutual fund scheme to invest Rs 2,000

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ET Online|
Dec 05, 2019, 05.00 PM IST
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I am investing Rs 2,000 via SIP in Axis Bluechip Fund and Rs 1,000 in Kotak Standard Multicap Fund. I want to invest Rs 2,000 extra in other funds. Please suggest some names.
--Rajesh Dawola

You have not shared key details like your goals, investment horizon, and risk profile. Without these details, it is impossible to comment on your investments or suggest new schemes for you. When you are investing a modest sum, there is no point in splitting it into too many schemes. You will not be able to get any meaningful diversification or reduce risk in this manner. Just stick to one scheme that is in line with your risk profile and investment horizon. Once you start investing a very large amount regularly, you may think of adding one more scheme to your portfolio.

An average investor needs two to four schemes, including tax saving schemes, in his or her portfolio. Adding too many schemes within the same category often results in duplication of portfolios. Adding every category to your portfolio can also counter productive if those categories are not in line with your risk profile.
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