A 3 Fund Portfolio is a type of lazy portfolio that contains only three investments.
It’s called “lazy” because of how simple it is to set up and manage. Though, for once in your life, investing with a lazy portfolio is a situation where being lazy can pay off.
A 3 Fund Portfolio historically has a higher probability of providing superior growth and returns compared to actively managed portfolios. This is because actively managed mutual funds have a tendency to underperform the market, while a lazy portfolio simply attempts to match market returns while keeping costs low.
And as we know, a basic index investing approach that matches the market performance through a diversified portfolio is a winning strategy over the long term.
The added beauty of the Three Fund Portfolio is its simplicity – it’s easy to set up and manage. Anyone can do it on their own.
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