I have 25 mutual funds and a Rs 1.5Cr portfolio. Am I over-diversified?

Published 2 October 2026

Adithya from Gurugram avatar Adithya from Gurugram
I have been investing for a while and currently hold about Rs 1.5Cr across 25 different mutual fund schemes.

I run a monthly SIP of Rs 2.5L.

I kept adding new top-rated funds over the years and switched some from regular to direct but never consolidated them.

Is this too many funds to track for a 15yr horizon?
Sachin Kabra Sachin Kabra ex-Director HDFC Private Wealth, Business Head Motilal Oswal AMC LinkedIn
Holding 25 different schemes is not a curated portfolio but a mutual fund museum. When you buy multiple actively managed schemes you end up with massive portfolio overlap. You are essentially replicating an index fund but paying the much higher fees associated with active management.

Let us look at the math on a Rs 1.5Cr portfolio with a Rs 2.7L monthly SIP. If your weighted average expense ratio is around 1.1% your annual management fees are roughly Rs 2L right now. Compounded at a 12% portfolio growth rate over 15yr those expenses balloon to a staggering Rs 1.6Cr.

If you optimize your portfolio to an expense ratio of 0.3% using passive index funds your annual fees drop to about Rs 50k. Over that same 15yr period the total cost would be just Rs 30L to Rs 35L. By simply being mindful of expense ratios and consolidating you save over Rs 1.2Cr over your 15yr horizon.

Managing 25 schemes also creates behavioral paralysis because it becomes too overwhelming to track. You only need two or three prominent funds to build a solid wealth creation engine.

Disclaimer: All information shared above are strictly for educational and informational purposes only. It should not be construed as financial or investment advice.
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