I have recently put 2K into the vanguard life strategy 100% fund, which is a pre diversified fund of funds. I also drip feed this account monthly. Now I’m putting another 2K from savings into vanguard and I’m deciding which vanguard fund to choose. My options are to 1) stick with the prediversified life strategy or 2) pick one or more of the other funds available on vanguard.
If I were to pick option 2, would I reduce the compounding effect from option 1? Put another way, is it better to put all money into only 1 fund of funds because it’ll start higher up on the compounding curve or will it make no effect and actually greater diversification acquired with option 2 is more valuable?