Am i deversified if i have have most of my money in one fund ? just realized this may not be a good thing .?

Back in 2000, i was told Kaufmann fund (kaufx) was a good fund to invest in so i placed 2K in a traditional ira for my wife, and 2K for myself, in 2001 learned about a roth so i placed 2K in a Roth for my wife and 2k for myself, i had 10K left so i opened a personal account and started a dollars cost averaging and evenly distributed into all accounts, in 2003 got scared when market looked bad so stopped putting in. now i look at my statements and realize i'm paying alot in fees because of their ratio so high or i just don't know if i'm doing things right should i have a traditional and roth for my wife and I in the same fund ? should i transfer traditionals into roths ? This fund has bounced back about where i started so should i get out all together and look for something with lower ratio? i had a 401 with my previous employer with vanguard 100% lifestrategy 1 Growth with about 12K and now i need to move it because no longer employed with them , any suggestions would be nice Thanks

No! Having all of your assets tied up in one fund is not a good idea. But you have discovered this already. But Kaufx has an excellent record even through the 2000-2003 period when 90% of funds lost money. By my calculations you are still making better than 12% annually. For sure its expense ratio is much higher than average. About 2.0% vs an average of 1.5%. Kaufx is a mid-small cap fund, as you well know. Nothing wrong with that at all. But you should consider some more functional diversity. There are several ways to accomplish this. One would be to begin investing is some low cost index funds with expense ratios of under 0.25%. You can open an IRA account with any of the on line brokers to accomplish this goal. There are about 300 index funds to choose from currently, but only about 50 are worth considering.

If you wish to continue investing in managed mutual funds, there are thousands to choose from. Consider one that invests in large cap stocks to counter balance your small cap kaufx. And one that invests in European companies to counter balance dollar investments. I am a big fan of SWZ, a closed end fund that invests in Swiss companies. Also a fan of TDF that invests in Chinese companies. And IIF that invests in Indian companies. But those last two are definitely RISKY.

Seriously, you need to see a financial adviser. This will not cost you any money. The different funds pay the fees. While there may be up front fees for certain funds, back load (which means when you cash in the fund you pay fees). But, still the adviser will be able to help you avoid pitfalls and get you the most for your investment.

Advisors put you in funds with fees too high so avoid them. Yes you must diversify. ADX-large cap us PEO-energy EWA-Australia GAM-growth are some solid closed-end funds to consider. All trade as stocks with low internal expenses. Getting out of that Vanguard certianly important as well as cutting Kaufmann with market high. Can roll over 401k to schwab.com with a full range of investment options. No cds, annuities, or guaranteed income. Ratio should not be focus but diversification should be. Feel free to contact via answers with further qs.

No, diversifying means splitting up funds to more than one outlet.