- Please do not disturb the investments already made. Let them be for a very, very long time.
- All future investments please make only in a low-cost, Equity, Index fund or an exchange traded index fund, where the fund management cost is below 0.50%.
- Mutual funds bring out new, exotic sounding schemes for market differentiation purposes and attracting investments. Please do not get carried away by such names. The actively traded finds charge 3 to 4% fund management fees per annum. This is a huge and unjustified cost when we are talking about real wealth creation over 30–35 years.
- Go for a solid institution, which can be expected to be in business for the next 100 years - SBI, HDFC.
- Any other investment idea really does not make any great difference.
Please read the following related articles for better understanding:
- Miracle of Compounding
- How Frequent Changes to Mutual Fund Portfolio Affect Investor Interest?
- How to Choose the Right Mutual Fund to Invest?
- Which is the Best Indian Hedge Fund?
- How to Invest in Overseas Stock Markets?
To conclude there is no harm in investing in multiple mutual funds so long as one invests in a low-cost index fund or an exchange traded fund (ETF).