Building an Index Portfolio

How to turn a few index funds into a complete portfolio: choosing a stock and bond mix, the classic three-fund setup, rebalancing and keeping the plan simple enough to follow.

Simple on purpose

A complete, diversified portfolio can be built from just two to four index funds. Simplicity is a feature: fewer funds means lower costs, fewer decisions and fewer chances to make an emotional mistake. The hard part is not picking the funds. It is choosing a mix you can stick with.

Unlock all of Investing School

The rest of this lesson, its chart examples and quiz are part of Investing School. Start free with Stock Market Fundamentals and the first lesson in every category.