How Many Funds to own

Mutual funds have clearly emerged as the principal savings vehicle. I am frequently presented a portfolio, which looks like an art collection. If you have been a serious fund investor saving at every opportunity, its time to administer an inventory check to your portfolio. How many do you have? With collecting funds being much easier than reorganising your portfolio, you might have--over the years--ended up being more of a collector than a real investor. How many are many? Or to put it straight, how many Mutual funds should you have in your portfolio? You now have a battery of mutual flooding the market, there are over 300 open and closed-end funds in existence. You might argue that one can never get enough diversification, and that, one should diversify not just in one asset class, or

This article was originally published on January 18, 2002.