How many index funds should you invest in?

#1

Hey all!

I wanted to clarify how many individual index funds one should be investing in?

I see that Jeremy recommends for example splitting a certain % into US, International and Bonds, but would you further break down those categories between multiple index funds in the same category? Or just stick to one of each?

I heard another financial guru mention he holds about 7-10 different index funds so now I’m curious. I figure more would mean better diversification depending on what you buy, but then there may also be some double-dipping.

Any advice I’d appreciated! Thanks!

#2

My favorite number if funds to hold is one. A target date index fund (it contains those three asset classes you mentioned).

Here’s the reasoning:

And I was/am a guru that holds 7 different index funds, and a single target date index fund has outperformed my portfolio. Here’s an article that breaks it down with my exact investments:

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