New Delhi, July 9 -- Many investors consider adding another mutual fund even if they already have 3 to 5 SIPs running, believing that owning more funds automatically leads to better returns and diversification. However, experts say the number of SIPs matters far less than whether each fund serves a distinct purpose in the portfolio.

According to Aditya Agarwal, Co-Founder, Wealthy.in, "If an investor already has 3-5 SIPs, the real question isn't whether to add another fund, but whether each fund in the portfolio is serving a distinct purpose."

Let's take a look at the key checks investors need to consider.

Agarwal advises investors to ensure each SIP has a clear purpose. A portfolio of three to five SIPs works well only when every fund...