Streamlining Mutual Fund Portfolios: Reducing Overlap and Costs for Better Returns
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Streamlining Mutual Fund Portfolios: Reducing Overlap and Costs for Better Returns

Investors often accumulate too many mutual funds, leading to portfolio overlap and duplicated investments in the same stocks. This reduces diversification benefits and increases costs through multiple expense ratios, ultimately eating into returns. Experts advise identifying and consolidating overlapping schemes to build a leaner, more efficient portfolio that can potentially enhance net returns without significantly altering the risk profile.

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