I don’t feel that you have a fat portfolio. As you are investing in Mid + Small caps heavily and having higher allocation in Pharma and Chemical, it make sense to diversify to reduce risk. I hold a diverse portfolio (My Portfolio) for the mentioned reason.
But if you want to trim you can follow this approach to select the stocks.
- Rank your holdings by conviction
- Come up with some allocation strategy. Something like
a. Hold no more that N stocks
b. Top M stocks allocation should be X%
c. Top O stocks allocation should be Y% - Let’s say I wish to hold 15 stocks in your portfolio
a. I would allocate ~50% in my top 5 holdings
b. I would allocate ~30% in my next 5 holdings
c. I would allocate ~20% in my bottom 5 holdings
d. Top 5 would have high conviction bets, Bottom 5 would have watchlist kind of stocks where I would potentially build higher positions in future depending on future earnings.