One of the reasons I got too many funds is to optimise tax.Example - Assuming you invest 10k in Nifty 50 every month. Instead of investing in one fund, invest in 10 different Nifty 50 funds across fund houses each month. Now assuming 5 / 10 of those investments are in loss. Redeem those and re-invest on the same day but in this process STCL is booked. Now square off that STCL with STCG from arbitrage fund at the end of financial year.
My verdict is its not worth the effort.