Should I invest in existing or new funds for long-term goals?

I have also invested ₹10,000 each in the recent NFOs (New Fund Offers) such as Mirae Asset Nifty AAA PSU Bond Plus SDL Apr 2026 50:50 Index Fund and Edelweiss Crisil IBX 50:50 Gilt Plus SDL June 2027 Index Fund, for my retirement expenses and my son’s education goals in 15 years. How much more should I invest in the NFOs? 

—Name withheld on request 

Your investments have the potential to generate good long-term returns. However, having SIPs in 16 equity funds is over-diversification and could sometimes be counterproductive. Ideally, 6 to 10 funds in a long-term portfolio are sufficient. Within these funds, you can create a blend of different categories of equity funds where some allocation can be made to small cap and international funds based on your risk-taking ability. Most of the funds you are investing in have a good track record. But there could be a reasonable overlap when we look at the overall portfolio level. You may consider reducing the number of funds, e.g., invest in one international index fund instead of three. 

Given your long-term goals, you can invest in equity funds and may not necessarily need debt funds. If you are salaried and have reasonable EPF contribution, this will do the job of diversification into debt. Investing the same amount in equity will help you create a higher corpus. Avoid investing in NFOs as you already hold 18 funds.

Harshad Chetanwala is co-founder at MyWealthGrowth