AboutJohn D Smith, CFP Expertise I can answer detailed questions regarding mutual fund investing, retirement planning, education planning and related financial planning/investment issues. I have a B.S. degree in Financial Planning & Counseling. I am also a Certified Financial Planner practitioner and have performed fee only investment management and financial planning services for the past 11 years.
Expert: John D Smith, CFP Date: 1/30/2008 Subject: mutual funds 2 or one?
Question I have just been hired by a bank. They contribute to a mutual fund within their company when matched by my own contribution. I currently have a fund with another bank that I am happy with in terms of my financial goals etc. Should I hold two funds and under what conditions does it make sense to hold two mutual funds?
Answer I am a firm believer in making sure a portfolio is diversified, so if you choose to invest in only 1 or 2 funds I would make sure it is a balanced fund of some sort that invests in different areas of the market. The key to adding additional mutual funds to a portfolio is to make sure they are different types of funds that do not act like one another (i.e. large cap, small cap, international, etc). For more information on mutual fund investing and the importance of diversification, visit www.vanguard.com and enter the personal investors portion of the website and go to the planning and advice tab. I hope this helps!
