Simplify Your Mutual Fund Portfolio: Boost Returns, Cut Taxes, Avoid Exit Loads

• Too many mutual funds dilute returns, complicate tracking, and often lead to overlapping holdings.
• Identify and consolidate duplicate funds, especially in large-cap or mid-cap categories, to reduce clutter.
• Exit underperforming funds (lagging for 3+ years) by using switch options within the same fund house to avoid capital gains tax.
• Plan exits gradually to avoid exit loads; prioritize funds past their one-year mark for equity funds.
• Utilize Systematic Transfer Plans (STPs) to gradually shift funds, reduce market timing risk, and align your portfolio with financial goals.