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Table: How Much Is Too Much?


Personal Business: INVESTING

TABLE: How Much Is Too Much?

How many equity mutual funds should people hold of the same investment type

before the benefits of diversification diminish? The figures below show the

average statistical correlation between the number of funds in your portfolio

and an underlying benchmark index. The higher the number, the greater the

likelihood you'll mimic the market.

NUMBER OF TYPE OF FUND

FUNDS IN YOUR GROWTH &

PORTFOLIO GROWTH INCOME BALANCED INTERNATIONAL

1 .91 .94 .91 .82

2 .93 .96 .95 .91

4 .95 .97 .96 .92

6 .95 .98 .96 .92

8 .95 .98 .97 .92

10 .99 .98 .97 .92

DATA: PRUDENTIAL DIVERSIFIED INVESTMENT STRATEGIES


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