Just to throw my hat in the ring on this. Looking at what is an...

Just to throw my hat in the ring on this. Looking at what is an appropriate level of diversification in LICs (and funds), requires a multifaceted answer. When constructing a portfolio, you should be looking at it with reference to your aims. When using managed investments, by which I mean funds, LICs, LITs ETFs etc, asset allocation is the key driver for outcomes. So you need to decide what asset classes you want/need. To take a step back to investing 101, at its simplest, there is Australian and International shares, Australian and International Fixed Interest, Australian and Global Property, Cash and Alternatives. Then, in all these categories, there are sub-categories. Eg, shares can be large cap, mid cap, small cap or micro cap. Then there is long only, long short or market neutral. And so it goes.

So, what is 'appropriate'? Personally, I'd say if you want equities, you should allocate across all these sub-catagories. Or, use a manager who can allocate across them at will effectively. But be aware of manager concentration

In the LIC space, you could get pretty good diversification of Aussie equities across the market cap spectrum and manager using two or three. The same for global equities. Personally, I would not use LICs for Alternatives except if tactically taking advantage of mispricing (a dangerous tactic although potentially profitable). And I'm going to assume given your age, you are not going to be using fixed interest.

But ultimately it's all about what you blend, not how many you have.

Hope that helps.