6/8 How many different mutual funds should I have in my roth IRA?
I know there are many factors, but I want to know shoudl I just
invest all my roth IRA money into one mutual fund, or divide it up
into 2, 5, 10, whatever. thanks in advance.
\_ It's not about how many funds you have, it's about what's in them.
Consider diversifying your assets. If you buy a small-cap fund,
for example, you'll want to also buy at least one large-cap fund
to spread the risk. On the other hand, if you buy just
one target-date fund (which contains an asset allocation mix
that the fund company judges is appropriate for your age), that
may be all you need. This sounds like the best option for you,
at least until you learn more about asset allocation and decide
that you would rather do your own management. |