Experts suggest two to three mutual funds for portfolios

As of February 28, 2025, India's mutual fund industry has assets totaling ₹64.53 trillion, down 4% from January. This decline is attributed to weak stock market conditions, including foreign investor selling and ongoing global conflicts. Equity mutual fund inflows have decreased by over 26%, marking a second consecutive month of decline. Despite this, the industry has grown significantly from ₹12.02 trillion in 2015, highlighting the importance of careful investment decisions. Experts recommend maintaining a diversified portfolio with two to three mutual funds, or three to five for equity funds. Over-diversification can lead to lower returns and management difficulties, so strategic fund selection is advised.