In my opinion, number of stocks can be decided based on maximum amount, in terms of absolute value, which you are willing to invest in a single stock.
For Example, in 20 Lacs portfolio, if are ready to invest maximum 2 Lacs in single stock; then 10 stocks may be sufficient for you.
If the portfolio size is 50 Lacs, but you are not comfortable to invest more than 3 Lacs in single stock, then number of stocks should go up accordingly to about 15-16.
At the end of the day, if you can have sound sleep at night, after investing amount X in single stock, then it is fine.
in general, my observation is that, as your Portfolio Size grows in terms of absolute value, No. of stocks tend to go up to minimize the stock level risk.
Generally, having up to 6% exposure to single stock, at cost level, could be fine with most of the investors. But for those who have very sound understanding of business fundamentals, even 10% could be fine.
This is not a guidance but just few observations from my experience.
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