News | 09.09.19
How Many Mutual Funds Are Too Many?
Financial experts say that at some point, adding funds for diversification purposes becomes counterproductive. For some advisors, the number is as low as 10; for others, it's closer to 20. “Once you get into the 20s, you're getting marginal benefits from a diversification standpoint,” says Josh Charlson, a director of manager selection at Morningstar. Investors can become so diversified that they simply mimic a big index, while paying needless fees. It is also more difficult to track and rebalance a portfolio with many funds, and investors with a lot of funds in a nonretirement account may face substantial taxes.
Read the full article on Wall Street Journal