Managed Funds Managed Fund diversification

Naturally, any managed funds are managed and diversified by fund managers. I wonder should we diversify our managed fund portfolio into different fund managers? and the level of diversification? someone said that a portfolio of 5 managed funds is a good diversification.

For me, funds can be diversified as follows:

2 Australian Share Funds : 60%
1 Australian Listed Property fund: 20%
1 International Share Fund (Asia, European, Emerging market): 15%
and 1 Income Fund: 5%
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Total 5 funds / 5 fund managers

What is your opinion?


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Blog » Investing Wealth Knowledge

 

Hi evisional.

I think it depends on what stage of your investing life you are at.

Me personally, I would prefer more income in the picture, but that would be to help with other investments, eg, property.

 

Perhaps the mix also needs to be altered depending on what sector is doing well at the time.
EG. Some might say LPT / securities have done there dash and Asia may be looking good.

MJK