I taken Quant small cap fund direct growth, quant flexi cap fund direct growth and motilol oswal midcap cap fund. I need good mutual funds for my portfolio. Which funds can I pick. If any funds better other than this I can shift to those mutual funds. I plan to take 1. small cap(Quant) 2. mid cap 3. flexi cap(Quant or flexi or both) 4. micro cap(Motilal oswal nifty microcap 250 index fund) Is this okay. 10+ years I'll hold mutual funds. Thank you in advance.

Ans: It's commendable that you're considering your investment portfolio and seeking guidance to make informed decisions. Let's address your concerns:
1. Number of Funds for Better Growth: The number of funds needed for better growth depends on various factors such as your investment goals, risk tolerance, and portfolio diversification. As you've already chosen three active funds (Quant Small Cap Fund, Motilal Oswal Mid Cap Fund, and Quant Flexi Cap Fund), you've established a diversified portfolio with exposure to different market segments. Adding more funds may not necessarily lead to better growth, as it could potentially increase complexity and overlap in your portfolio.
2. Considerations for Adding Motilal Oswal Nifty Microcap 250 Index Fund: While index funds offer low-cost exposure to market indices, they may not always outperform actively managed funds. One disadvantage of index funds is their inability to actively select stocks based on market conditions or company fundamentals, potentially limiting their ability to generate alpha (excess returns) compared to actively managed funds. Additionally, investing in a microcap index fund like Motilal Oswal Nifty Microcap 250 Index Fund may introduce higher risk due to the inherently volatile nature of microcap stocks. As such, it's essential to carefully evaluate the risk-return profile of this fund and consider whether it aligns with your investment objectives and risk tolerance.
3. Reviewing and Shifting Funds: Periodically reviewing your investment portfolio is crucial to ensure it remains aligned with your financial goals and risk tolerance. If you're considering adding or shifting funds, evaluate each fund's performance, consistency, and fund manager track record. If any fund consistently underperforms or deviates from its investment mandate, it may be prudent to consider replacing it with a better-performing alternative. However, avoid making frequent changes to your portfolio based on short-term market fluctuations, as this can disrupt your long-term investment strategy.
Ultimately, the decision to add Motilal Oswal Nifty Microcap 250 Index Fund or make any changes to your portfolio should be based on a thorough assessment of your investment goals, risk tolerance, and the merits of the available investment options. Consider seeking advice from a Certified Financial Planner (CFP) or financial advisor who can provide personalized guidance based on your specific financial situation and objectives. Remember to stay focused on your long-term investment strategy and avoid making impulsive decisions based on market noise or external factors.