New Delhi, Nov. 2 -- There are over 1,800 mutual fund schemes in India - and the number keeps rising as fund houses roll out new fund offers (NFOs) almost every month.

But here's the real question: does owning more schemes really diversify your portfolio - or just make it harder to manage?

Before adding another fund, check if it genuinely contributes to your portfolio. Many equity schemes within the same category - say, large-cap - often hold the same top stocks.

"Investors often mistake the number of funds for diversification," says Nisreen Mamaji, CFP and founder, MoneyWorks Financial Services. "When schemes within the same category hold similar stocks, you're not spreading risk - you're duplicating exposure. It's better to own a few...