Is there a limit on the fraction of one's portfolio that is safe to invest in a single mutual fund?
The risks I'm concerned about are the fund manager making bad decisions and the fund not generating good return relative to its peers, over time, there being a scam in the fund house, the fund house's computers getting hacked and them losing track of who has how much in their account, and other scenarios one can imagine.
My investment advisor (whom I no longer work with) told me that given how much money I have today, I should have no more than a quarter of it in a single fund house. And that as I have more money, this percentage should decrease.
Is there a norm or widely-accepted practice regarding this?
These investments are in India, denominated in rupees.