"Diversification is protection against ignorance. It makes little sense if you know what you are doing" - Warren Buffett
How many funds should you have in a portfolio? Furthermore how many should you have within the same sector? These are two questions which most investment commentators shy away from. But in this article I will answer the latter question and shed some light on the former. In doing so I will also expose some uncomfortable truths about the fund management industry.
It's war!DIY investors need to accept that, despite the millions spent on marketing material trying to convince you otherwise, fund managers and the companies they work for don't care about their investors. The thing fund managers care about most is keeping their well paid jobs and their big houses. The fund management companies in turn care about how popular their funds are because the more money they have under management the more they earn from their percentage annual management charge.
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