Boatmanea, you wrote: "I'm trying to diversify and avoid all-eggs-in-one-basket." Are you actually proposing to allocate 5% to each of the funds you listed above? When you go beyond 7 to 10 funds, the beneficial effects of diversification diminish, according to an M* study. Even so, your proposed portfolio is heavily overweight in large-cap stocks, exceedingly underweight in small-cap stocks, has no fixed-income allocation (cash, bonds), and in my view puts too many eggs in Fidelity's basket (keep in mind Fido's orientation to growth stocks and the tendency of its fund managers to buy the same stocks). It would help posters to know your time horizon until retirement before making suggestions. However, I think you need to step back and rethink your asset allocations before you start picking funds, checking carefully for overlapping positions.

Wow!  Thats alot of baskets!

I thought I was bad. 12 domestic large cap funds is ALOT. My concern would be that you have quite a bit of overlap plus you are much more likely to mimic index results, only with higher costs.  I would look to consolidate.

Also, I think you are overweight in LC. I would spread things out a bit more evenly.Maybe add a bond holding for diversification.

Not saying that this would be the correct allocation for you, but a more balanced allocation would be something like

LC 35% Mid/Small 22% Foreign 23% Bonds 20%

Good luck

Funddog

 

 

I would suggest building the portfolio on M* and use xray tool for stock overlap if you have not already done this.

The number of funds seem high, but it would depend on portfolio size, the number of holdings for 100K vs number for 800K...   I would look at more SC and Foreign...  maybe a BRIC play..

Gee! Can we Pimp Your Ride while were at it too? 

  

You R Kidding right?

20 funds? and No Bond Funds?  and UMBIX is history..Columbia now with a load and only 20% Int'l? and even then, Fidelity Funds? Ugh!

If you willing to pay us for doing this? Fine.. Otherwise, I don't think so.

I realized on my drive home today that I do have WAY too many funds in that list and that they are already, in themselves diversified and likely overlapping in a lot of areas - thanks to those who quickly pointed out the obvious flaw. I'll be cutting this list down to 8 to 12 total, but would still would appreciate any comments. Bonds - I'm not interested in at this point. I've got 25 years to build this portfolio, a fairly decent tolerance for risk, but not insane amounts.

This is first attempt at doing this myself... starting from scratch, with no background other than books and message boards and nothing invested thus far. I'm not asking for exactly what to do, just trying to solicit constructive comments from seasoned investors who've been doing this a while. Thanks ahead of time.

-EB

I am far from a seasoned investor, but I would increase my international up more than 20%.

But thats just me

Brian

EB, it looks like you have done just fine for a start.

I do agree with the other folks that (unless your total portfolio is north of $ 1M, in which case you really SHOULD have some bonds) you have at least a few too many funds.  You are already planning to cut back a bit, I see - and I would concur.  IF you have a long way to go to retirement (20 years or more), I see no problem with being 100% in equities. 

I would also agree with Brian that you might consider increasing your international exposure to over 20%  (to at least 1/3 IMO).  With a long time horizon, you mght want to consider 10% in China or other emerging markets.  Good luck.

MWL

Limoman:

Gee! Can we Pimp Your Ride while were at it too? 

  

You R Kidding right?

20 funds? and No Bond Funds?  and UMBIX is history..Columbia now with a load and only 20% Int'l? and even then, Fidelity Funds? Ugh!

If you willing to pay us for doing this? Fine.. Otherwise, I don't think so.

 

Boy, that wasn't very nice. 

I would add 10% REITS, VGSIX, for diversification.

Also, reduce the number of funds.  For all equity  I would use:

10% REITS, 20% International, 70% US Stock (50% Large/Mid, 20% Small Cap)

twinlabs:

Limoman:

Gee! Can we Pimp Your Ride while were at it too? 

  

You R Kidding right?

20 funds? and No Bond Funds?  and UMBIX is history..Columbia now with a load and only 20% Int'l? and even then, Fidelity Funds? Ugh!

If you willing to pay us for doing this? Fine.. Otherwise, I don't think so.

 

Boy, that wasn't very nice. 

 

Hey Twin,

We have a saying on the jobsite when we are ripping someone apart ......

"That aint right, but it is sure is funny"

 

Allright, here's the final cut. Thank you very much to all of you who've spent time commenting and providing your opinions and critiques - some more helpful than others. It was very much appreciated and helpful. I'll be sending this in to the portfolio manager Monday.

Large cap
15% ICSLX MainStay ICAP Select Equity Portfolio
15% FVDFX Fidelity Value Discovery
15% NBPTX Neuberger Berman Partners - Trust Class
15% JAMRX Janus Research
Foreign/Emerging markets
10% LZEMX Lazard Emerging Markets - Institutional Class
10% VHGEX Vanguard Global Equity
Mid cap
10% FLVCX Fidelity Leveraged Company Stock
Small cap
5% RYVPX Royce Value Plus - Service Class
Specialty
5% FNARX Fidelity Select Natural Resources

-EB

I still think 60% large-cap stocks is too much. I would cut back to 40% or 50% at most. I used to own Neuberger Berman's NBPTX and like its manager, but Janus Research (JAMRX) doesn't impress me (its 10-year annualized total return is only 9.7% according to Money magazine). If anything, I'd go with a large-cap core fund like Janus Contrarian (JSVAX). I would increase your allocation to small-cap stocks to at least 10% by doubling your position in RYVPX.