Right now I have the vast majority of my nest egg in a single Vanguard diversified moderate growth fund. Which is itself divided into hundreds of stock and bond offerings both foreign and domestic. Is this diversified enough, or is there a danger of having such a large chunk of assets all with one company’s fund. Is there any danger that Vanguard could some how go belly up or some wily embezzler could run off with my savings to the Cayman Islands.
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The current thinking is that the average investor should stick to around four mutual funds. Large cap, small cap, bond and international. These should be low cost index funds. There is no real advantage in owning multiple funds in the same class. All large cap funds are goin to own GE, Microsoft etc. Increasing the number of funds does not increase diversity. You don’t say which fund you own but Vangaurd pretty much wrote the book on low cost indexing.
Vanguard manages the fund. They do not hold the assets so their going under should not be a concern. Your money has been invested in the companies stock not Vangaurd.
Two good sources of information are Morningstar.com and Motleyfool.com. They even have some online classes for new investors.
You have picked a good fund that seems to have three of the four classes covered. The only thing you will do by trading it is increase the tax you have to pay on capital gains.
Charles Schwab manages my investments, and i am in about twenty different funds. I am up over 10% year to date.
Ten percent year-to-date is pretty good, but the S&P 500 is up about 23% YTD.
I’m about 30% in bonds to keep my risk low. I’m approaching retirement.