The Economic Times

How should investors rebalance portfolios overloaded with smallcap and thematic funds? Heres the ideal allocation strategy

Building a mutual fund portfolio needs careful planning. Experts highlight that too many funds lead to overlap and high risk, especially in smallcap and midcap categories. Investors are advised to consolidate holdings, increase largecap exposure, and reduce thematic investments. A balanced approach with fewer, well-chosen funds ensures better management and stability.