Having 2 - 3 funds in same sector good or bad

sva19

When I choosing funds say for £1000, rather than having one fund in say China fund, I choose 2 or 3 funds, say Jupitor China, Gartmore [URL="javascript:openFactSheetsWindow('https://www.fidelity.co.uk/investor/research-funds/fund-supermarket/factsheet/summary.page?UseProxy=Yes&idtype=SEDOL&fundid=3387410&UserChannel=Direct&showwrapper=false');"][/URL]China and First State China, putting £333 equally.

The reason behind this is that one manager may perform better than other, but my question is is doing this Good or Bad, i.e am I just overlapping stock,

What your views?

Do others do this?

Lokolo

Not all fund managers buy the same stock though.....

I have 2 global opp funds. 1 is up 8%, the other is up 19%.... (both bought at the same time)

Blah99

I'd suggest you'd be better off with one China fund, rather than 3. Perhaps go for one dedicated China fund, one emerging markets fund, and one, er, beer fund

cloud_dog

sva19 wrote: »

.......but my question is is doing this Good or Bad, i.e am I just overlapping stock,

What your views?

Do others do this?

It depends on soooo many factors and your attitude / strategy. A lot of people will talk in terms of a balanced or diversified portfolio but that's because it suits their purpose / stage in life/investment/strategy.

I'm very much a resource based investor, and with it emerging economies and often hold two or three funds (for example) in the same geographical area or focus.

so to answer your question.......... "is it Good or Bad"....... well, it depends on you, are you ok with it?

purch

It's relatively easy to research Funds.

Having Funds with different mandates, strategies etc in the same geographical area makes sense.

gozomark

Good or bad ? Somewhere between good and irrelevant, but not bad

Primrose

I'm not sure I would opt for three funds in the same geographical area. Two perhaps, if they had different investment strategies but it rather depends which sectors the rest of your funds are invested in. If these are your only stock market investments I'd diversify elsewhere and only have a proportion of my portfolio in that region. If you're already adequate invested elsewhere, then such a belt & braces option may not be a bad alternative. As always, do your research. Hargreaves Lansdown, in the Funds Research section of their website give a list of the biggest holdings in each fund so you can check to see how much overlap there is.