You Might Need Fewer Funds Than You Think

Diversification in a portfolio is a good thing, but only up to a point. This according to a recent article in The Wall Street Journal.

With the number of options for mutual funds and ETFs “exploding,” the article says, ‘investors might be tempted to purchase more funds.” It argues, however, that they can assemble a diversified portfolio with fewer than five and, “for plenty of people, just one will do, some financial advisers and analysts say,” adding that such a minimalist approach can provide decent returns with limited risk and lower fees.