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I'm comfortable with taking risks, I have had my friend look at how my 401k is doing and he said my rate of return last year was good so I shouldn't worry, but I wanted to get some more input on the 2 mutual funds I am invested in.
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I'd increase from 2 funds to about 3-4.
Large Cap
Small Cap
International
Check my blog... I actually use 7 funds for my typical portfolio for proper diversification.
Large Cap Value
Large Cap Growth
Mid Cap
Small Cap
International Large Cap
International Small Cap
I have one extra fund (emerging markets bond) which I keep a small position in. it has given me >10% returns last 3 years... so I have my reasons for picking it and keeping it.
I THINK Scanner has 3-4 funds he uses (I think it's domestic, international, REITs and commodities).
Either strategy should be diversified enough. Steve might argue I am to dependant on CEOs and I might argue he's too dependant on materials. But we are both diversified. In more than 2 funds.