Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

How many different mutual funds do you own?

Is there such a thing as owning too many Mutual funds? I don't believe so. I own approx. 30.

Comments

  • edited June 9
    LOL - Always controversial. I find it really cumbersome to track more than 15 (plus 2 or 3 cash accounts). So strive to be in the 15-16 fund ballpark.

    Sure, you can compile a single list of 50 funds if you want - and track. Not hard to do. But when you start arranging those into meaningful sub-groups, portfolio sleeves, or whatever else you call them … that’s when the rubber hits the road and tracking difficulty intensifies.

    Currently, I hold 15-16 traditional type funds which provide exposure to a variety of investment types & styles. Here’s a list of those types.

    (1) domestic growth
    (2) domestic value
    (3 ) global growth
    4) gold / pm miners,
    (5) commodities
    (6) EM bonds,
    (7) global investment grade income
    8 domestic investment grade income,
    (9) high yield municipal
    (10) 2 risk parity funds
    (11) a hedge-type fund
    (12) a conservative multi-asset “tracking fund” which I own and also against which I measure my own performance

    Honestly, I don’t think it matters much. I’m always looking for ways to consolidate / lessen the number. I’d say let your allocation model, goals and personal style dictate how many funds - as long as you can track them well.
  • I own 9 funds and seek to keep my fund total no more than 10. I usually own closer to 5 or 6.
  • 5. I played the 20-30 game at one time but found that I was never able to strike a meaningful position in any particular one, enough to move the needle on total portfolio performance that is. As mentioned by hank I also grew tired monitoring all of them finding better things to do with my time. Everyone is and can be different though.
  • beebee
    edited June 9
    I try to structure my portfolio into three buckets.

    Bucket 1 - Cash / Bond Funds (for Income)
    I hold a cash or bond positions with each account I have. Presently this bucket has 17% of my portfolio and represents 3-5 years of income (I may need to spend in retirement).

    Bucket 2 - Asset Allocation Funds (for Capital Preservation)
    I hold 3 AA funds and they make up 35% of my portfolio. These funds attempt to outpace inflation, reduce downside market risk, and achieve moderate growth.

    Bucket 3 - Sector / Category Funds (for Growth)
    I hold 10 funds here. These tend to be buy and hold positions and represent 48% of my portfolio. My plan is to periodically sell shares to replenish/enhance bucket 1 (Cash / Bonds) especially when these "Bucket 3 funds" capture above normal gains. I am more actively evaluating these funds for consistent performance, manager risk/reward, and trend momentum.
  • edited June 9
    5 in my long-long term account that I rarely touch (several AFs)
    3 in my more actively-managed account (PRWCX, MGGIX, PRILX)
    1 as the only holding in my 403(b) (RWMGX)

    The vast majority of the OEF holdings are in equity. (There's FI in PRWCX, and I hold a modest 30+ year position in FKTIX.)
  • edited June 9
    Taxable 1 - 3 mutual funds, 1 ETF
    Taxable 2 - 1 individual stock
    401(k) - 2 mutual funds (one fund will be replaced by a CIT "clone" on 07/01), 1 CIT
    Roth IRA - 3 mutual funds (one fund is also owned in Taxable 1 account)
    HSA - 1 mutual fund
  • This is something I have spent the last year working on since I turned 70 and started collecting social security. As of now I have

    3 equity funds chosen by me. Currently a small value, an industrials, and Fidelity’s housing and construction.

    2 asset allocation funds, a conservative and a world, chosen for their managers. So I can’t lose all my money with my ideas.

    3 alternative funds, a gold ETF, a REIT fund, and an intermediate government bond fund, which, up until this year had acceptable returns for the safety.

    Lastly, cash in a MM and FRIFX

    So far this seems to be working in that I get some some choices and some structured returns

    John
  • @Observant1 - what's a CIT please?
  • @Mark I believe that's a Collective Investment Trust.
  • edited June 10
    @Mark,

    A CIT is a Collective Investment Trust.
    CITs may be available via some defined contribution plans [401(k), 457(b), etc.].
    They are similar to mutual funds but have less reporting requirements and are not governed by the SEC.
    CITs usually have lower expense ratios than corresponding mutual funds.
    For example, I own MIEIX (0.70% er) in my 401(k).
    When my 401(k) plan replaces MIEIX with a CIT "clone" on 07/01, it will have a 0.58% er.

    Link
  • 7 mutual funds. And just since yesterday, ONE single stock. I don't use buckets, but I do my best to cover large, small, foreign, domestic. Stocks. Bonds. (Currently: 40 stocks, 56 bonds. And 4 cash.)
  • I have 22 investments. 8 mutual funds and 14 ETFs.
    There is one fund in my not real large IRA.
    There are 3 mutual funds in my somewhat bigger Roth.
    My taxable, which is 2/3 of my stash has 4 mutual funds and 14 ETFs.
    These are all held in 3 companies, the largest being Vanguard.
    I use spreadsheets to keep track of the holdings along with the cost basis in taxable holdings. There is a spreadsheet for my expenses and one more for income for any money that crosses my doorstep that ends up on the 1040.
    I keep turnover fairly low to moderate my taxes (12% bracket).
    My current spend rate is about 1% of my portfolio. My AA is 70/30.
    Since I stopped working 14 years ago, my stash has doubled.
    I'm 71yo with not much else to do.
  • Compare whatever you have vs a benchmark (VBIAX or your desired VYM/VCIT allocation). Many times a 10-30 fund portfolio will under perform over 5 year rolling periods. Choose your key metrics. That, in turn, may provide guidance how to think about this question.
  • In our Roths, my wife and I both own about 12 each, all actively managed. We try not to have overlap, but still it's probably 50-60% overlap.

    In our 401ks, we both own fewer since our employers both offer fewer options. In my 401k, I think I own 6, all but 2 are index. Wife 401k is about the same.
  • I like Hank's approach a lot. I hold a fair number of alternative funds, as these types of funds work, until they don't. My expected yearly return for these funds is 2.5-3 % .My previous experiences with ACVVX QMNNX PAUAX and MFLDX, among others reinforce my wariness of these funds. In the future I may just rely on MERFX ADANX and CVSIX to simplify things.
  • I have several accounts which I treat each separately but with an eye on overall allocation. My primary accounts withover 50% of my assets is an IRA Rollover with 14 Funds focusing on low correlation, distinct style boxes, asset allocation etc. I rarely update this portfolio and have allocations to both Growth and Value in Domestic Large, Mid and Small. Also, I like to invest in Int'l Gorwth and Value where most investors pick one Int'l Fund. I also own EM and Int'l SMid, Fixed Inc Core Plus, Multi-Sector Fixed.

    I have a Roth @ Vanguard with 3-4 Index Funds. My current 401k is my tactical portfolio with another 10-12 funds & ETF's.

    I will consolidate over the next10-15 years as I get closer to retirement.
  • Currently 3 across all our accounts, but primarily 2. Never held more than 8 and don't anticipate holding more than a few ever again at any given time.

    Personally decided that holding a couple percent in a given fund is pointless for me as @Mark stated previously, no matter what the performance of that position is, the overall effect on the portfolio is negligible.

    I am aware that given the number of accounts and type of accounts held and investment choices offered, it can be difficult to keep the number of funds held to a minimum.
Sign In or Register to comment.