I'm investing 1000 each in 35 mutual funds, but don't see any wrong in it.

Hi folks

I'm a 21 year old, investing 1000 each into 35 mutual funds Taking my SIP to 35k per month

Just to set the context, apart from this, I'm passively investing into ipo's and stocks as well for the long term.

I've read at a lot of places that investing in more than 10 mutual funds is a foolish choice, because most of your stocks are going to be overlapping. But I don't understand why it's called foolish?

There can't be a 100% overlap of portfolio between any 2 mutual fund houses, there is always going to be a significant difference, which adds to the risk diversification any which ways, because my money is spread across multiple set of stocks and across different fund manager brains as well, for e.g. one might sell some of my stock at a high or a low, while other might not.

My diversification is - 45% small cap 25% mid cap 10% large cap Rest growth or sectoral

I'm open for any feedback/criticism or suggestions even.