International funds v ETFs

I have started investing in Platinum International Fund and have a few international ETF’S like VTS and VEU. Should I stick to just one fund or is it good to have mix? For instance, having equal investments in Platinum or Magellan Global Fund or a mix of ETF/Fund as a long term investment, as buy and hold strategy.I guess the issues is the fees?

A: Thanks for the question.


It sounds like you are pretty much on the right track. You have taken a mix of passive funds (through the ETFs which give broad market exposure to the US and the rest of the world), and potentially, specialist active funds through Platinum and Magellan who will be more focussed on stock selection.


With the active managers, I think spreading your investment reduces some of the “manager” risk – it is a diversification strategy.


Clearly whether you can afford to have this mix depends on the size of your investment in offshore funds, and any resultant transaction costs.



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