Does an index fund count as diversifying?
bricestacey: No single fund is truly diversified. For example, the Vanguard Total Stock Market Fund offers stocks across all industries and includes growth and value companies from domestic and international, large, mid, and small-cap companies. That's pretty darn diverse, but it only covers stock. To really diversify, you may want to purchase a bond index as well.I use Vanguard. Vanguard has some of the lowest cost index funds. The only downside is they all have $3000 (or more) initial limits. Oh and there are generally no transaction costs with Vanguard, so you could do $100 a month via direct deposit and personally incur no fees.