I suggest that you don't buy more than five funds at a time, which will be more difficult to manage. This is the conclusion I reached after talking with many fund managers.

In fact, the number of funds you buy is not the key factor. The key factor is whether you know the fund you bought, such as the overall management level of the fund company, the proportion of stocks held by the fund, and which industries the fund mainly chooses to invest in, so that when you add a new fund to your fund basket, you can understand what impact this fund has on your original fund portfolio.

For a simple example, if you buy a 50ETF index fund, you will find that as long as the index goes up, the net value of the fund will go up. After a while, you bought a small-cap fund, which was "a blockbuster if it didn't ring". In the early stage of market shock adjustment, small-cap stock funds have made great strides. In addition, judging from the long-term average yield of western countries, small-cap stocks are generally higher than the market average, and the price fluctuation is far greater than the market average. Therefore, the combination of these two funds can not only enjoy the benefits of bull market, but also enjoy the long-term average high returns of small-cap stocks. Of course, the volatility of the two fund portfolios will be greater than that of the 50ETF index fund, but less than that of the small-cap fund.

I was talking about two funds. If it is a combination of 4-5 funds, we can also analyze it accordingly. Therefore, whether the fund investment is well dispersed or concentrated depends on the basis of investment: to understand the fund portfolio you invest in, you should know what impact adding a new foundation to the portfolio has on the return rate and net value fluctuation of the portfolio.