Variety is the Spice of Life
I like to pick my funds based on a couple of different strategies. One of the best strategies for me in picking the best mutual funds is that they need to be diverse. I have funds that are doing well for me because they are diverse but to coin a popular term in the Iacoca days, they are not based on di’worse’ification. They seem to keep their companies in a few different sectors but somehow they are all related and you can find a common thread for them. Needless to say, if one is doing well, then hopefully the others will as well.