The first step you can take to trim the number of stocks, which i have also done is…first put same sector stocks together like in your case all banking stocks together like IDFC first bank, Federal bank, equitas bank…Once you categorise all stocks in different sectors , then think of restricing stocks under each sector, for example, you might decide you want to restirct to only 2 stocks in bank and may be 2 stocks per sector. Lowest allocation and big losses may not be a right criteria because you may wind up selling all stocks of some sectors. Proper balance among sectors will not be achieved. Then you can think of choosing one from large cap another from midcap, if u want to select 2 stocks per sector.
In short, “There has to be some Method to the Madness”
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