I have seen people complaining about how many mutual funds do you have and what not. What I have learned is that it doesn't matter how much mutual funds you have. The only thing matters is you can justify which mutual funds is for what purpose.
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Like for example, I have multiple mutual funds for different purpose. I have 4 mutual funds for my children higher education. I have 5 mutual funds for my retirement. I have 1 mutual fund for emergency fund. I have 2 mutual fund for my future vacation or car. Like every mutual fund has a purpose and a goal.
I know there will be some overlap of funds here and there but doesn't matter if the purpose can be met with the any number of funds. But again if you start investing in every fund out there then there is a problem. Like every new fund and without any purpose or goals then you are actually not gaining anything.
A lot of people usually asks to invest 3 to 4 funds only and that's correct too. But again even if you have 10 funds then it is not a problem if you have the goal setup.
The only problem with more funds is that there is more overlapping of funds and thus there is some problem in that. When you have more overlapping you are actually not getting the benefit of more funds and your portfolio is confined to some funds or the other.
So it's better to have more funds but less overlapping of funds. And that's the problem, when you have more funds there will be more overlapping. So once in a while if you can check the overlapping of funds then also its good. I am telling you this because then you can then invest in category of funds for different goals rather than one category multiple times.
