It is hard to give you a definite answer because you did not state your financial goals, the percentage of your total portfolio in each fund, or the percentage of your portfolio in other asset classes (i.e., cash equivalent assets like CDs and money market funds and bonds). Right now, you have some international exposure and are invested in an industry sector (i.e., technology). You also have some value exposure, as well as exposure to dividend-paying stocks in the equity income fund.

To determine how well your four mutual funds are doing, check the comparison of their performance in your latest annual report to their benchmark index (e.g., Standard & Poors or S&P 500). Also, what are their expense ratios? Are they less than 1.4% (the average for stock funds)? If not, excessive fees are eating into your return. You can also check a figure in Morningstar called the R2 (R squared). This tells how closely a particular fund tracks a market index, such as the S&P 500. If your current funds (and any new ones) all have a similar R2, you would not get the risk-reducing benefits of owning a multi-fund portfolio.

Bottom line: Any new investment purchase should be made with your financial goals in mind. What would you be investing the money for? College? Retirement? Once you get that established, you could then look for underrepresented market sectors in your portfolio (e.g., a total stock market index fund? small cap funds? large cap growth?). Buy funds that meet your investment objective with good historical performance and low expenses. Also consider your risk tolerance: sector funds can be very volatile.

Do not go overboard with fund purchases. Six to ten funds, maximum, is sufficient for most people. After that, tax and record-keeping paperwork can become a hassle, and you run the risk of becoming a "closet indexer" by owning all the companies in a major stock market index without the low expenses of an index fund.

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