While it's important to make sure your portfolio is properly diversified, having too many funds can make it difficult to keep track of your investments. You should therefore only keep as many funds in your portfolio as you're comfortable monitoring.

Different ways to diversify By buying into a number of different companies or industries, or investing in different managed funds, you can still create a portfolio that doesn't leave you too exposed if one or two of your choices don't perform as well as you were expecting.

Multi Asset Allocation Funds are hybrid funds that must invest a minimum of 10% in at least 3 asset classes. These funds typically have a combination of equity, debt, and one more asset class like gold, real estate, etc.

Multi-strategy funds aim to generate consistent returns by investing in a number of strategies that generally exhibit minimal or negative correlation, both to one another and to broad market indices.