Diversification is a common investment objective. Going about it can be complicated.
Diversification is achieved only to an extent by the quantity of securities within the portfolio. It’s accomplished mostly by the asset classes in the mix, as well global geography.
Many investors buy several mutual funds and therefore believe they are adequately diversified. But they merely may have duplicated much of their portfolios by adding much of the same securities with each fund holding.
I find that indexed funds or exchange traded funds (ETFs) provide full diversification, and at lower cost.
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