Returns not hampered by too many or too few stocks
Schemes with a higher number of stocks have performed on a par with those having an ideal portfolio
)
premium
(Click on picture for details)
An ideal portfolio needs to have 15-50 stocks, going by different studies. But, Indian equity mutual funds seem to defy this. Schemes with a higher number of stocks have performed on a par with those having an ideal portfolio. This holds true across different categories of funds. Don’t worry if your fund puts its eggs in too many baskets. For all you know it may work in your favour.