How Many Mutual Funds Should You Own?


This week’s AAII Weekly Digest highlights these “must-read” AAII articles:


With tens of thousands of mutual funds at your disposal, the number of fund options now far outweighs the number of stocks for most investors. Screening is one of the quickest ways to winnow down a large number of investment options to a more manageable number. Mutual fund screening enables investors to target mutual funds that exhibit strong characteristics, allowing you to focus on those mutual funds worth a second look.

Charles Rotblut

The decision to own a mutual fund or an exchange-traded fund (ETF) is dependent on a variety of factors. Both types of investments have advantages, but individual investors should not feel compelled to switch from one to another. Rather, investors should first consider the following factors and then consider the investment that is best for them.



How Many Mutual Funds Should You Have in Your Investment Portfolio?Time to take an inventory of your mutual funds. How many are there? What are their investment styles? Is your portfolio of mutual funds cluttered just like your closet? Have you owned some mutual funds so long that you have forgotten why you bought them? Are there some mutual funds on the top shelf, way in the back of your financial closet you haven’t even looked at in a while?


The allure of target date funds is simple: a single fund that provides a diversified portfolio and alters its allocation as shareholders approach the date when cash withdrawals will be taken. The promise of an “all-in-one solution” to investing for retirement is attracting both investors and employers. However, behind the simple appeal are complex strategies that offer more volatility and risk than these funds are perceived to have.

Our Member Question for this week is:

What percentage of your overall investment portfolio is invested in target date funds?


Vote to answer this week’s Special Question: What do you consider to be the biggest advantages and drawbacks of
investing in target date funds?

Last Week’s Results:


Most Investors See Drop in Stock Price as Opportunity to Buy, Not Reason to Sell

11-01-2016-article6Selling is arguably the most difficult aspect of investing in individual stocks. Many of us spend a good amount of time researching possible stock investments before pulling the trigger. Often, however, very little thought is put into when it is time to sell. Our latest reader question asked how far a stock’s price has to fall before selling, while our weekly special question asked our readers to offer their own definition of risk tolerance.

AAII Mutual Fund Classroom: Mutual Fund Investing Articles

If you’re contemplating investing in mutual funds, you’ll want to arm yourself with some basic information. This AAII Investor Classroom, one of the many benefits of an AAII membership, gives you all the tools you need to get started. The topics covered include: how to break a tie between two funds; what to look for when reading a mutual fund statement; how to research mutual funds; and much more.


The AAII Weekly Digest is one of the many benefits of AAII membership. To learn more, consider a risk-free 30-day Trial AAII Membership to start becoming an effective manager of your own assets.


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