Q: HOW MANY FUNDS SHOULD I INVEST IN? A: If you’re wondering how many funds you should own, I’d encourage you to keep it simple. Ideally you should have just one (a target date fund). But if you’re picking your own index funds, as a general guideline, you can create a great asset allocation using anywhere from three to seven funds. That would cover domestic equities, international equities, real estate investment trusts and perhaps a small allocation to bonds or gilts. Remember, the goal isn’t to be exhaustive and to own every single aspect of the market. It’s to create an effective asset
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