In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool One analyst Jason Moser takes a question from a Fool reader who asks: "I'm just starting to invest into a 401(k) at work. I know it's Foolish to be diverse, but how many funds should I invest in?" Jason believes that one of the most important questions to answer first is whether an investor is looking to grow or protect his wealth. From there exist a number of options, but giving one's self exposure to small-, mid-, and large-cap stocks along with emerging/international ones can offer ample diversity while maximizing opportunity.
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The article Ask a Fool: How Many Funds Are Needed to Be Diverse? originally appeared on Fool.com.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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