Should I invest in Reliance Small Cap Fund?

I am a new investor and have invested in two mutual funds (details below) in August 2017:
a) SBI Bluechip Fund - Direct Plan - Rs 1,000
b) L&T India Value Fund - Direct Plan - Rs 1,000
I have moderately high risk profile with a long-term investment horizon. Now, I am planning to invest Rs 1,000 in Reliance Small Cap Fund (D). Is this a right decision?
I have a long-term investment horizon of 10 years.

--Udit Sharma

Abhay Shaha, a Certified Financial Planner, responds:

Your choice of funds is good. For a longer term Reliance Small Cap Fund may outperform Nifty and will definitely create wealth. Though, I believe you should have least two funds in your portfolio. Over diversification or having many funds in the portfolio may hamper returns. Investing in minimum number of schemes according to your needs will help you to create wealth in next 10 years.