Probably yes: for most people, three to five equity funds give all the spread they need, and nine usually means the same shares are held several times over.
More funds feels safer, but diversification comes from owning different things, not more schemes. Two large cap funds, a flexi cap fund and an index fund often hold many of the same top companies. You pay several expense ratios for what is, in practice, one portfolio. It also becomes hard to track and review.
A simple way to sort it out:
- Check how much your funds overlap. Our Portfolio X-ray shows the shares you hold through all your funds together.
- Decide the role each fund plays, such as large companies, mid and small companies, or international. Keep one fund per role.
- Stop new SIPs in the funds you drop first. Selling the old units can wait, so you can manage exit loads and capital gains tax over more than one financial year.
Before selling anything, look at the tax. Equity gains held over a year are long-term, taxed at 12.5% above ₹1.25 lakh of gains a year, and shorter holdings are taxed at 20%.
Your own answer depends on what the money is for and how the funds overlap. If you want someone to look at your numbers, you can book a free call.